Question

In your course readings you would have come across a list of eight sectors of the tourism industry. List them and beside each one, explain the challenge you feel will be the hardest for that sector to overcome.

Answer 1

A key to understanding the tourism industry is to identify the different sectors which make up the industry and to understand their roles. Some sectors of the tourism industry are more extensive and make up a larger component of the market share than others and therefore they may have a higher consumer profile. Some examples of these sectors would be transportation (airlines), accommodation (hotels), tour wholesalers and retail travel agencies.

Sometimes the consumer is totally unaware that a type of tourism sector (or business) exists. An example of this is an inbound tour operator such as Sunlover Holidays, Viatours, APT (Australian Pacific Touring), AAT Kings.

Eight (8) major industry sectors have been identified and are listed here:-
1. Accommodation
2. Transportation
3. Tour operators
4. Tour wholesales (inbound and outbound)
5. Attractions and theme parks
6. Retail travel agents
7. Information services
8. Exhibitions, meetings and events.
It’s useful to group the businesses that make up the tourism industry on the basis of the functions they perform (i.e. what each business does on behalf of the tourist or visitor). For example, motels, resorts and bed-and-breakfast properties all provide shelter, and to varying degrees food, beverages and entertainment or leisure experiences.

When it comes to volatile industries, there are many that come to mind. The travel industry is definitely one of them. The foregoing analysis of the growth of tourism in India shows that although the industry has registered an all round substantial development in the country during the last two-three decades, most of the potential, for its growth has not yet been exploited and much more is left to be desired. The limited, and rather unsatisfactory, growth of this industry in our country has been due to a number of problems it is beset with and various difficulties it has been facing. The important factors, which have limited the growth of tourism in India, are mentioned below:-

Globalization:- Globalization is leading the creation of uniform standards and protocols. However, the unique selling point (USP) of travel companies or destination marketing organizations (DMOs) lies in providing a rare and unique experience. The travel industry, therefore, works towards offering products that allow the average tourist or traveler to experience something they have never experienced before. Novelty is a much-needed element in today’s travel aspirations. However, at the same time, localization is also important. Tourism boards and travel companies must know how to connect with the foreign traveler. They must make use of translation services to create multilingual websites, vital travel information, and essential signages that can guide tourists in the proper manner. Tourists must feel welcomed and at ease while they are away from home.

Taxation:- Tourism is one of the most taxed sectors. A simple glance at the taxes paid on airline tickets and hotel rooms gives an idea of how taxation can greatly affect tourism. Therefore, it’s necessary for the travel industry to offer competitively priced offerings in order to balance out the equation. Governments must also come to the realization that tourists already contribute to the local economy via purchases, travel retail, and other tourism expenditures.

Travel Marketing:- Travel marketing can sometimes be deemed by travelers or tourists as being inadequate, false, or exaggerated. In order to change this perception, marketing entities must work towards developing innovative marketing solutions to lure the new crop of travelers who are becoming more discerning and informed. In addition, technological disruptions and the influence of social media also mean that it’s a time of both opportunities and risks. Travel marketers must look to harness tech and creativity to find their way into tourists’ travel plans. On the other hand, they must also pay attention to localized content.

Infrastructure:- Tourism infrastructure in many locations is outdated and underdeveloped. Governments, tourism boards, and destination marketing organizations must work towards improving the current infrastructure with foresight. Future challenges must also be addressed in this area. Solutions could include faster immigration at airports, faster checkout processes in hotels, better public transportation, and interpreting solutions at airports, stations or ports.

Security:- Industry players must work towards establishing better security infrastructure for tourists and travelers. This can be achieved by working with local law enforcement, city councils, and local governments. Governments must work towards sourcing for more manpower and economic resources to boost security and vigilance without stifling the travel experience within the country.

The big question is, can these challenges be overcome? Well, some of these challenges can become growth opportunities for travel companies, tourism boards, and destination marketing organizations. As for the others with external factors involved, it would be unthinkable for individual travel businesses to make significant changes.