In this section I will explain the different developments in the tourism industry since the 1960's and what effect it has on the travel industry. (Merit)
P4 met
Developments in the T&T Industry:
Introduction of Jet Aircraft
Introduction of the Euro
Growth of Budget Airlines
Opening of the Channel Tunnel
Privatisation of British Rail
Internet and introduction of Expedia
APD
Merger of Thomson and First Choice
Introduction of Super Planes and high speed train network in Europe
Social Factors
AJW
P4 met
Developments in the T&T Industry:
Introduction of Jet Aircraft
Introduction of the Euro
Growth of Budget Airlines
Opening of the Channel Tunnel
Privatisation of British Rail
Internet and introduction of Expedia
APD
Merger of Thomson and First Choice
Introduction of Super Planes and high speed train network in Europe
Social Factors
AJW
Introduction to jet aircraft
The introduction of reliable jet planes, such as the Boeing 707 which was founded in the 1960's. The new planes offered more speed in order for passengers to get to various destinations around the world in a shorter amount of time and would cost passengers a lot less than if they was to use boats, trains and cars. This means that people would be able to travel to more places and was a lot cheaper and faster and therefore more people will want to use the jet aircraft to travel.
Introduction of the Euro currency
The euro currency is used in 17 of the 27 member states of the European Union: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany,
greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain and a few more. The euro was introduced to the world’s financial markets as an accounting currency on the 1 January 1999. Before most countries became part of the euro each country had their own type of currency in which if you wanted to travel across 3 countries you would have to have 3 different types of currency which would be a lot of hassle. However, it is now easier to travel with the same currency and people will therefore travel more as it’s not as much hassle.
greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain and a few more. The euro was introduced to the world’s financial markets as an accounting currency on the 1 January 1999. Before most countries became part of the euro each country had their own type of currency in which if you wanted to travel across 3 countries you would have to have 3 different types of currency which would be a lot of hassle. However, it is now easier to travel with the same currency and people will therefore travel more as it’s not as much hassle.
Introduction of easyjet airline, growth of budget airlines
Easy jet was founded in November 1995, in which only had two aircraft's running between Glasgow and Edinburgh on a three flight a day programme. Easy Jet Airlines, which has emerged as one of Europe’s most successful low-cost, Short haul airlines have very low prices early on and increase as the departure date approaches. Also we find that while a pricing strategy such as easy Jet’s is indeed Profit-maximizing. However more people are now using budget airlines and booking holidays separately as they work out a lot cheaper, the recession has made a great deal on easy jet as people cannot spend a large amount on big airline companies for example Thomas cook.
Opening of Channel Tunnel
The channel tunnel is a railway tunnel that is underneath the water of the English Channel and connects the island of Great Britain with mainland France .The tunnel opened in 6 May 1994 but passengers could travel on the channel tunnel in 14 November 1994 the channel tunnel is an easier and cheaper way of transport to get to France, people would choose this as it costs a lot less than flying to France.
Privatisation of the British Rail
Privatisation of the British rail was a train line that carried passengers and coal which finished in 1993 and split into loads of different companies for example first group, Arriva and virgin. this has an impact on the travel industry as it gives people a lot more choice and a different range of prices for example if you book with virgin the earlier you book the cheaper it is.
Introduction of Expedia
Expedia Started off by Rich Barton and Lloyd Frind in 1996, but was fully launched by 1998. Expedia is one of the largest online travel companies only for the UK. Expedia is also Atol protected in which makes sure your holiday is safe. You can book any kind of holidays on expedia, package holidays, last minute holidays, flights, hotels and different types of holidays such as, skiing, party holidays, family and business trips. However this will attract a lot of people as you can book almost everything on expedia and it is a lot easier and cheaper than going into a travel agent.
Introduction of High Speed Train network in Europe
High speed trains are like the usual type of train but it just functions at a faster speed, the high speed train in Europe travels at 125 miles per hour. The first high speed trains appeared in Europe and the U.S in 1933. They travel from country to country, in which most people will use as it’s a
cheaper way of getting to places and is fantastic for people that don’t have to be in places quickly. Also, high speed trains are more energy efficient to most other trains.
cheaper way of getting to places and is fantastic for people that don’t have to be in places quickly. Also, high speed trains are more energy efficient to most other trains.
Introduction of APD (Airline Passenger Duty)
APD was introduced in 1994. In 1996 air passenger duty was reduced on economy flights which inbound tourism was growing quickly but in
2006 it was greatly increased. APD is for anyone travelling from a UK airport in which there are four bands based on the distance from London to your destination in which are band A- 0-200 miles, band B-2001-4000, band C-4001-6000 and band D- over 600 miles in which you have to pay different rate for to travel.
2006 it was greatly increased. APD is for anyone travelling from a UK airport in which there are four bands based on the distance from London to your destination in which are band A- 0-200 miles, band B-2001-4000, band C-4001-6000 and band D- over 600 miles in which you have to pay different rate for to travel.
Merger of Thomson Holidays and First Choice
Thompson Holidays merged with First Choice in 2007 which are both now owned by TUI travel, they merged together as they was two large companies and would make a huge profit in which they have and now are one of the two biggest tour operators. TUI is horizontally integrated however, they are making more of a profit and have more customers than usual as people who usually book with First Choice will now book with TUI and the Thomson customers will now us TUI so they have customers and income from both companies.
Introduction of super planes
The super plane airbus A380 took its first flight in 2005 and entered its first initial commercial service in 2007 with Singapore airlines. The airbus A380 can hold up to 853 passengers at one time. The super plane has a
fantastic effect on the travel industry as they can carry a lot more passengers than a normal aircraft and therefore won’t use as much fuel and money than it would to use 2 aircrafts. However, it is more likely to attract business people going on long-haul flights and wanting to rest.
fantastic effect on the travel industry as they can carry a lot more passengers than a normal aircraft and therefore won’t use as much fuel and money than it would to use 2 aircrafts. However, it is more likely to attract business people going on long-haul flights and wanting to rest.
Social factors
The level of education has increased by people from all sectors of society has improved since the 1960's as more and more people are going to university and are achieving at least 2 qualifications. The more educated people are the more aware of the world and its possibilities. The most popular markets in travel and tourism is 'the grey market' this appeals to the older generation which have lots of time and money on there hands as they save up over their younger years so that they can have a fun time when they are older. Saga is the most famous tour operator which cater for older people.
Also people now have more free time to take holidays and short breaks as the working week is shorter and there are longer holidays and bank holidays. this means that people have more time to go on holiday and take short breaks. This is good for the travel industry because it will bring more business and jobs.
Also people now have more free time to take holidays and short breaks as the working week is shorter and there are longer holidays and bank holidays. this means that people have more time to go on holiday and take short breaks. This is good for the travel industry because it will bring more business and jobs.