Other factors affecting the travel and tourism industry.

Question 1

What economic factors affect the travel and tourism industry ?

Answer 1

Strength of the economy, disposable income, currency exchange rates, oil prices.

Question 2

What social factors affect the travel and tourism industry ?

Answer 2

The grey market, changing family structures, work - life balance, holidays and benefits, trends.

Question 3

How does the strength of the economy affect the travel and tourism industry ?

Answer 3

Influences how much disposable income tourists have to spend, affects how much tourism businesses can invest / develop, recession, growth.

Question 4

How does work - life balance affect the travel and tourism industry ?

Answer 4

Increase in flexible work patterns, flexitime and home office due to technology, changing attitudes due to events such as Covid - 19.

Question 5

How does changing family structures affect the travel and tourism industry ?

Answer 5

More single parent families, more multi - generational families (due to increased life expectancy and therefore bigger bookings), more dispersed family (more places to visit)

Question 6

How can organisations respond to economic factors ?

Answer 6

lower prices / offer discounts, competitive pricing / undercutting, fuel hedging.

Question 7

How can organisations respond to social factors ?

Answer 7

Analyse internal data (sales), review the marketing strategy / target market, attempt horizontal / vertical integration to access more markets / range of customers.