Late-2000s recession Essay Example for Free

Late-2000s recession EssayEuropean Tour Operators have managed to achieve a strong posture in the tourism industry. The two biggest ones, TUI Travel and Thomas Cook, have a outsized market sh are. However, in the latter part of the decade, between 2007 and 2010 the industry has experienced a downturn because of the turbulent environment which was created revolutionary threats and modified the competitive forces. PoliticalTaxation Policies on travel methods by different countries has a large impact on the tourism industry, governments leave alone some subsidies and tax exemptions in their countries in order to foster the right tourism. Visas into certain countries mint also cause people to stop locomotion there as corrupt countries can charge large amounts of money to gain them. Political instability can non only affect the country in which it is but also neighbouring countries. The same also happens when terrorist acts happen on a country or are from a country. Economical Globalisation of travel companies and airlines has meant that many countries can provide services that they could not before do to cultural knowledge. With companies being global there are also economies of scale to be gained. TUIs vertical and horizontal integration makes them very competitive and they provide services across all holidaying experiences. Exchange rates area large part to the amount of tourists travelling from each country. If one countries currency becomes weaker than others it is more likely to become a holiday destination due(p) to a foreseen value for money.This affects the company less as they have a stronger position than the node in that they can charge the customer depending on the country with the stronger currency. The recession has also caused some issues at heart the industry as there have been some companies that have not been successful. TUI managed to make it