The European tourism industry has grown amazingly in the first few years and it continues to do well even today. One of the tourism companies which has stood the test of time and has continued to improve on its operations day in day out is the TUI. A brief overview of the performance of the tourism industry shows that in 2005, the tourism industry recorded the greatest number of international tourists and experienced a turnover of about 7 billion dollars.
The same industry provided jobs for around 8% of the total employment. Previously the tourism industry had been growing at a very slow rate. This was a result of the terrorist attacks in New York and other cities in Europe. North Europe and Turkey were the champions in the growth with turkey taking the lead. The TUI tourism company was growing very first and creating subsidiaries in every part of Europe. (Buhalis, 115-212)
So what is the underlying forces driving the competitive forces in the tourism industry? Information and communication technology has lead to the growth of the tourism industry in Europe. This has been in application for a very long period but has grown deep roots in recent times. Its effects are not being felt only in Europe but in the whole world. There has been a growing number of tourist information centers and through this information is relayed in the whole world efficiently and first. (Porter, 149-160)
The internet has also had great effects on the tourism industry. Tourism products represent the greatest number of products selling on the internet. Through the internet, marketing of the tourism industry in Europe has gone a higher level and this explains why the tourism industry is growing amazingly. The internet provides new possibilities for doing business. Tourism products are brought into the customer’s houses. Though there are threats caused by the internet, the merits are more than the demerits. (Poon, 34-56)
Change in lifestyle and life values is another force that affects tourism in Europe. The modern generation prefers new destinations and visits individually as opposed to the past where people did what was referred to as mass tourism. A lifestyle of pleasure and entertainment acts positively on the tourism industry. People have moved from the old days of living a boring life to the new era of living an interesting life where they can have a vacation after work and where they can spend what they have earned on themselves. The number of visits increases due to this aspect and people are now interested in many different things like culture and people of the places they visit. This explains why the tourism industry thrives as discussed earlier.. (Poon, 34-56)
The growing size of the market due to the increase in population is another force acting on the tourism industry.
The economic forces will affect the tourism industry. When people have enough credit, when they are economically stable, they will be able to engage in the tourism industry unlike when they do not have enough money. Because the world is developing and many people are getting economically better, the tourism providers must also improve their products and this brings the issue of competition within the stakeholders in the tourism industry. (Porter, 149-160)
Political governmental and legal forces can also be considered. In the period following the September attacks, the tourism industry suffered a great blow. This was due to a lack of security which is a governmental issue. If the government provides security, tourism does well and vice versa. The government will also regulate things like taxes and other tariffs which will greatly affect the industry. (Porter, 149-160)
Competition is the force acting on the industry. Every company wants to outdo its competitor in the market and the process, they improve their services a great deal and many people find themselves being wooed by these services. Service improvement becomes a driving force in the tourism industry. (Buhalis, 115-212)
Events that are prepared and performed in these countries improve the image of the countries in question. These events could be games and sports, economic forums, environmental forums, and others. They positively affect the tourism industry. Many tourism destinations have been developed and are becoming cheaper and this encourages tourists to visit. (Poon, 34-56)
These and many other forces act on the tourism industry and make it attractive and cheap to buy. The European tourism industry is changing for the best due to technological developments, economic forces, political forces, cultural forces, and competitive forces. This makes tourism favorable and preferred in Europe. (Buhalis, 115-212)
Works cited
Buhalis, Laws, E.Tourism Distribution Channels – Practices, Issues and transformations, Continuum Publishing, (2001), London and New York. 115-212.
Porter, M. & Millar, V. “How Information Gives You Competitive Advantage.” Harvard Business Review: (1985) 63(4), 149-160.
Poon, A. Tourism, Technology and Competitive Strategies, (1993). Wallingford: CAB International. 34-56.