M1: Explain how the three factors are currently affecting the business travel environment and the
operational practices.
Global economy
Exchange rates have been affecting the global economy rapidly. This means if the pound value goes
down there would not be many business employees in coming to the UK since it would be very
expensive for them. For example Travelodge hotels sales have been rapidly increasing since it is a
budget hotel their sales have gone up to 63% in the couple of years. This mean that plenty
organisations have been booking a low budget hotel for the business employees to stay in. after
looking at this Hilton hotels and also premium inn have been offering their rooms for a cheaper price
in order to compete with low cost accommodations like Travelodge and also bed and breakfasts.
Also strong foreign trade and also solid economic growth have also been increasing. The Middle
Eastern countries such as India and also china have also been developing since 2006 and 2007 by
3.1% since more people have been traveling to different countries for the purpose of business and
also in order to gain more experience. But still recessions in some countries have made it difficult for
business employees to have their meeting and also to travel back and forth. Even the fuel prices
have been significantly increasing making it difficult and also more expensive for business employee
to travel to different countries in purpose of their meeting for their organisations. And hence
organisation have been cutting unnecessary travel needs such as transfers and other services like
ancillary services.
Technology
Travel business such as airlines, trains, buses coaches have been rapidly losing a lot of customers
since a lot of business employees now have their meeting via internet which allows them to stay in
the same place without having to leave their business office for their meetings. This makes a lot of
loss for the travel agents since they are not getting as many booking as before due to technology
which makes them loose plenty money. Also the business employees can find cheaper flights or
hotels by themselves without going to the travel angst which makes the travel agent to lose their
money again. Since the travel agent would have link with the airline company and would get
compensations if the sold their seats to the customer, but the business employees could find more
cheaper deals online with the help of the internet without having to leave their office. Also the
business employees researching by themselves is more easier and also more accessible
than going to the travel agent. They could research for many options and find the cheapest deals
and book the holiday. Business employees can book their flights and hotel without having have to
leave their work premises which would be more convenient for them and also they will be able to
look for better deals compared to what the travel agent might offer them.
Terrorism
This has major impact on the destination. If there is massive bombing in an area there would be not
many people in that destination and if there is not many people in that destination that mean that
the business would have to shut down since there would not be customers that would buy their
products. For example during the 2011 London bombing, only ,London was mostly affected after the
terror attack the tower bridge and other main attractions were closed due to the terror attack and
the all the offices and conference areas had been closed. The travel agents had gone in a loss since
they receive many cancellations at a time making them to lose lot of money. When there is a terror
attack the people wouldn’t find it safe for them to do their business and hence would cancel their
meeting or even not make a deal with their company. Sometimes the travel agents re arrange the
operational practices.
Global economy
Exchange rates have been affecting the global economy rapidly. This means if the pound value goes
down there would not be many business employees in coming to the UK since it would be very
expensive for them. For example Travelodge hotels sales have been rapidly increasing since it is a
budget hotel their sales have gone up to 63% in the couple of years. This mean that plenty
organisations have been booking a low budget hotel for the business employees to stay in. after
looking at this Hilton hotels and also premium inn have been offering their rooms for a cheaper price
in order to compete with low cost accommodations like Travelodge and also bed and breakfasts.
Also strong foreign trade and also solid economic growth have also been increasing. The Middle
Eastern countries such as India and also china have also been developing since 2006 and 2007 by
3.1% since more people have been traveling to different countries for the purpose of business and
also in order to gain more experience. But still recessions in some countries have made it difficult for
business employees to have their meeting and also to travel back and forth. Even the fuel prices
have been significantly increasing making it difficult and also more expensive for business employee
to travel to different countries in purpose of their meeting for their organisations. And hence
organisation have been cutting unnecessary travel needs such as transfers and other services like
ancillary services.
Technology
Travel business such as airlines, trains, buses coaches have been rapidly losing a lot of customers
since a lot of business employees now have their meeting via internet which allows them to stay in
the same place without having to leave their business office for their meetings. This makes a lot of
loss for the travel agents since they are not getting as many booking as before due to technology
which makes them loose plenty money. Also the business employees can find cheaper flights or
hotels by themselves without going to the travel angst which makes the travel agent to lose their
money again. Since the travel agent would have link with the airline company and would get
compensations if the sold their seats to the customer, but the business employees could find more
cheaper deals online with the help of the internet without having to leave their office. Also the
business employees researching by themselves is more easier and also more accessible
than going to the travel agent. They could research for many options and find the cheapest deals
and book the holiday. Business employees can book their flights and hotel without having have to
leave their work premises which would be more convenient for them and also they will be able to
look for better deals compared to what the travel agent might offer them.
Terrorism
This has major impact on the destination. If there is massive bombing in an area there would be not
many people in that destination and if there is not many people in that destination that mean that
the business would have to shut down since there would not be customers that would buy their
products. For example during the 2011 London bombing, only ,London was mostly affected after the
terror attack the tower bridge and other main attractions were closed due to the terror attack and
the all the offices and conference areas had been closed. The travel agents had gone in a loss since
they receive many cancellations at a time making them to lose lot of money. When there is a terror
attack the people wouldn’t find it safe for them to do their business and hence would cancel their
meeting or even not make a deal with their company. Sometimes the travel agents re arrange the
