Unit 1 – Investigating the Travel and tourism Sector, assignment 3, P4.
Introduction:
In this assignment, I will be discussing the different ways the travel and tourism sector has been effected over the last few years by incidents that
have happened.
Development 1: Legislation – Air Passenger Duty 1996
This means that the government charge tax for each passenger coming into the UK.
How it has shaped the travel and tourism sector:
Many people look for the cheapest price when travelling abroad and returning, this is also how budget airlines make their profit as lots of people
would book through them. However, the total final price of their ticket would be increased when tax is added for their return ticket. The
government adds tax because of the environmental impact of flying. Only children under 16 are excluded from the tax. Ultimately, they raise
around £3bn in tax revenue a year as a result of it. The cost changes depending on whether it’s a long haul or short haul flight, or what class
you’re sat in. For example, if you were flying short haul, economy it would be £13 per passenger flying. This may put people off who are on a
budget as they wouldn’t have much money to spare. It would also make travellers wary of hidden charges and thus could cause anger and
confusion as a result of it. Furthermore, it hasn’t changed the demand in flights although it has slowed the growth.
Development 2: Legislation- EU Package deal
This applies to all tour operators in the EU selling package holidays. It is a set of rules for the tour operators and actions customers can take if they
were to encounter any issues.
How it has shaped the travel and tourism sector:
This policy has effected the travel and tourism sector as it provides consumers with more security when purchasing through tour operators.
Furthermore, it also pushes tour operators to make sure their company image is immaculate as otherwise they could face a ruined reputation or
even be sued which would gather negative media attention. Consequently, it has resulted in a decline in small tour operators as they will not be
able to pay enough as they wont be making enough income. This effects the travel and tourism sector as like to support local businesses’ and this
will affect them going abroad with them, therefore they may chose to travel independently.
Introduction:
In this assignment, I will be discussing the different ways the travel and tourism sector has been effected over the last few years by incidents that
have happened.
Development 1: Legislation – Air Passenger Duty 1996
This means that the government charge tax for each passenger coming into the UK.
How it has shaped the travel and tourism sector:
Many people look for the cheapest price when travelling abroad and returning, this is also how budget airlines make their profit as lots of people
would book through them. However, the total final price of their ticket would be increased when tax is added for their return ticket. The
government adds tax because of the environmental impact of flying. Only children under 16 are excluded from the tax. Ultimately, they raise
around £3bn in tax revenue a year as a result of it. The cost changes depending on whether it’s a long haul or short haul flight, or what class
you’re sat in. For example, if you were flying short haul, economy it would be £13 per passenger flying. This may put people off who are on a
budget as they wouldn’t have much money to spare. It would also make travellers wary of hidden charges and thus could cause anger and
confusion as a result of it. Furthermore, it hasn’t changed the demand in flights although it has slowed the growth.
Development 2: Legislation- EU Package deal
This applies to all tour operators in the EU selling package holidays. It is a set of rules for the tour operators and actions customers can take if they
were to encounter any issues.
How it has shaped the travel and tourism sector:
This policy has effected the travel and tourism sector as it provides consumers with more security when purchasing through tour operators.
Furthermore, it also pushes tour operators to make sure their company image is immaculate as otherwise they could face a ruined reputation or
even be sued which would gather negative media attention. Consequently, it has resulted in a decline in small tour operators as they will not be
able to pay enough as they wont be making enough income. This effects the travel and tourism sector as like to support local businesses’ and this
will affect them going abroad with them, therefore they may chose to travel independently.
