Impact of COVID-19 on Virgin Holidays: A Study on the Tourism Industry

This study analyzes the impact of COVID-19 on the tourism industry and Virgin Holidays, covering the issues created by the pandemic and necessary strategies to deal with them. It uses a positivism approach and inductive research strategy with a survey method. The study finds that COVID-19 has affected the travel plans of people, reduced the revenue of tourism companies, and put a great influence on the occupancy rate of hotels. To deal with the issues, the study suggests promoting local tourism, ensuring the safety and security of travelers, and focusing on sustainable tourism.

Foundation Year
Research Project

Table of Contents
Chapter One:...............................................................................................................................................3
Introduction:............................................................................................................................................3
Research Aim:..........................................................................................................................................3
Research objectives:................................................................................................................................3
Research problem:..................................................................................................................................3
Research Questions:................................................................................................................................3
Chapter Two................................................................................................................................................4
Methodology:..........................................................................................................................................4
Gantt Chart:.............................................................................................................................................4
Chapter Three..............................................................................................................................................6
Literature Review....................................................................................................................................6
Chapter Four................................................................................................................................................7
Present findings.......................................................................................................................................7
Analyze and summarize findings.............................................................................................................9
Chapter Five..............................................................................................................................................11
Conclusion.............................................................................................................................................11
References.................................................................................................................................................12

Chapter One:
Introduction:
Tourism industry is considered as the crucial part of the economy. It contributes in the
economic growth by generating employment opportunities. However, the COVID-19 has been
created huge impact on the industry in terms of employment, profitability, operations and more.
Cancellation and halt on international flights decline the demand of tourism services (Yeh,
2021). The study is based on Virgin Holidays that is a renowned tour operator based on UK. The
present study will cover impact of COVID-19 on the company along with the issues created by
the pandemic in reference of the respective organization.
Research Aim: “To analyze the impact of COVID-19 on the operations of the tourism industry”.
A study on Virgin Holidays.
Research objectives:
 To understand the impact of COVID-19 on tourism industry.
 To analyze the issues created by the COVID-19 at Virgin Holidays.
 To formulate necessary strategies to deal with the issues created by the COVID-19 at
Virgin Holidays.
Research problem:
The COVID-19 has been created several issues for the business entities. Tourism is one
of most affected industry due to the pandemic. Due to the strict guidelines of the government,
there were restrictions on the international travel which put a direct impact on the travel industry
globally. The present study is based on the impact of COVID-19 on the operations and daily
functions of tourism organizations.
Research Questions:
 What is the impact of COVID-19 on tourism industry?
 What are the issues created by the COVID-19 at Virgin Holidays?

 What are the strategies to deal with the issues created by the COVID-19 at Virgin
Holidays?
Chapter Two
Methodology:
 Research Philosophy: In context of the given study, Positivism approach has selected. It
is based on the use of quantitative methods in order to get reliable, authentic and valid
results based on the numerical analysis (Kumar, 2018).
 Research Approach: Inductive approach is used in the present study to explore the
already present theory in an efficient manner.
 Research Strategy: In reference of the research strategy, survey strategy has chosen in
the present context which will help in collection of detailed and in-depth information for
the success of research work (Alkhalifah, 2017).
 Research Methods: From the quantitative and qualitative methods, the present study is
based on the qualitative method. Here, the existing information has evaluated in detailed
manner in order to get detailed knowledge on the specific topic.
 Data collection: Out of the primary and secondary sources of data collection, the existing
study is based on secondary analysis. For this purpose, information has been drawn from
reliable and authentic websites, publications, journals and more (Larshin and Lishchenko,
2018).
Gantt Chart:
It is a well-known tool that is used to make a proper schedule to complete a particular
project in timely manner. In Gantt chart, different activities are included with the time and
responsible person. It helps in defining the roles & responsibilities of different people in
successful completion of the research work (Bøe, Hognestad and Waniganayake, 2017). For the
present study, Gantt chart is outlined below:

Chapter Three
Literature Review
The impact of COVID-19 on tourism industry
According to Aref, 2020 The pandemic put a tremendous impact on the travel industry.
Countries all across the world imposed travel restrictions to curb the transmission of virus. In
addition to this, nations suspended international flights so that people cannot move from one
country to the other (Khalid, Okafor and Burzynska, 2021). Airpot closure, lockdown are some
necessary measured which were taken to control the transmission of virus. In this situation,
tourism companies faced a deep decline in the number of bookings which reduced down the
revenue of the organization and put an adverse impact on their operations (Pathak and Joshi,
2021). In addition to this, several people working in the tour & travel industry loosed their jobs.
Therefore, the COVID-19 put a profound impact on the functioning of the tour & travel
companies (Seraphin and Dosquet, 2020).
Issues created by the COVID-19 at Virgin Holidays
According Rahman and et. al., 2021, COVID-19 has created such an environment where
people are in panic and avoid to visit different places. Due to the negative mindset of people,
Virgin Holidays is not able to get higher number of bookings which is creating direct impact on
their profitability (Carr, 2020). In addition to this, they have to fire the employees due to
insufficient funds to pay the salaries. The global pandemic affected tourist travel risk and
management perception (Brouder, 2020). It has changed the behavior of tourists regarding travel.
Now, they are likely to visit such destinations which are safe and secure. This is directly
affecting the sales and revenue of the respective company (Weed, 2020).

Strategies to deal with the issues created by the COVID-19 at Virgin Holidays
According Grover, 2020, to deal with the after impact of COVID -19, it is important to
promote the local tourism. Here, the company can focus on domestic tourism by preparing
necessary domestic tour packages. In addition to this, Virgin Holidays is required to offer
discounts and promote the packages in order to gain the attention of domestic tourists(KHADKA
and et. al., 2020). In addition, there is requirement to focus on sustainable tourism. For this
purpose, the organization needs to promote green tourism in order to develop a positive mind set
of people regarding travel (Prayag, 2020). Additionally, the organization is required to take care
of safety and security of the people during travel. It will help in attracting more number of
tourists that is important for the company to deal with the issues created by the pandemic (Raj
and Griffin, 2020).
Chapter Four
Present findings
The COVID-19 has affected the travel plans of the people as now, they are likely to
prefer to travel at domestic placed rather moving to the another country. The perception of the
travelers got affected during the pandemic. They are more concern regarding the health, security
and more which put a direct impact on their travel decision.

From the above graph, it is analyzed that 82% people have changed their travel plans
during the pandemic time. It is monitored that 50% people have cancelled their trips completely
whereas 45% people have reduced their travel plans. Now people prefer driving than travel in the
other transportation vehicles. Through the graph, it is found that 22% people have changed their
plans to driving than flying. On the top of that 11% people have changes their plans to domestic
travel than international travel (Travel changed after 9/11; Here’s how it will look after the
Covid-19 pandemic finally recedes, 2020).
The pandemic created serious impacts in terms of loss of employment, decline in the
income-level and more. While dealing with the COVID-19, the company was not able to earn
necesaart amount of revenue in order to maintain consistency in daily operations.

With above graph, it is analyzed that COVID-19 put a drastic impact on the revenue of
hotels. In Europe, the revenue of per available room was in neatly 58 % loss were they recorded
20% loss in context of the average daily rate. The major loss was recorded by hotels of Asia
which was more than 60 % in terms of revenue of per available room (5 charts show which
travel sectors were worst hit by the coronavirus. Hotel Occupancy drops, 2020).
Analyze and summarize findings
Tourism industry is one the worst affected industries of pandemic. The COVID-19
caused prevention on the international travel. In addition, lockdown was imposed in different
countries hence the people were not allows to move from one place to the other. In addition to
this, the pandemic also affected the mind ser of the travelers. It is analyzed that several people
cancelled or postpone their trips due to the pandemic. In addition, they changed plan from
international to domestic travel in the fear of getting infected.
It is analyzed that the COVID-19 also put a great influence on the occupancy rate of
hotels in different countries across the globe. Occupancy rate of Hotels reduced down as the

people were not likely to visit at different destinations during the pandemic. It put a direct impact
on the revenue of the hotels and negatively affected the overall profit margin.

Chapter Five
Conclusion
To conclude, it can be said that Tourism industry is highly affected by the pandemic.
Suspension of international flights, lockdown and attitude of the travelers are creating issues for
the companies working within travel industry. However, it is possible to deal with the issues
created by the pandemic by promoting local tourism, ensuring the safety and security of travelers
and more.

References
Books and journals
Alkhalifah, A., 2017. A research Methodology to Explore the Adoption of E-
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Bøe, M., Hognestad, K. and Waniganayake, M., 2017. Qualitative shadowing as a research
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Carr, A., 2020. COVID-19, indigenous peoples and tourism: a view from New Zealand. Tourism
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KHADKA and et. al., 2020. Impact of COVID-19 on the tourism industry in Nepal. Asian
Journal of Arts, Humanities and Social Studies, pp.40-48.
Khalid, U., Okafor, L.E. and Burzynska, K., 2021. Does the size of the tourism sector influence
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pp.1-20.
Kumar, R., 2018. Research methodology: A step-by-step guide for beginners. Sage.
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Pathak, D. and Joshi, G., 2021. Impact of psychological capital and life satisfaction on
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Prayag, G., 2020. Time for reset? COVID-19 and tourism resilience. Tourism Review
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Raj, R. and Griffin, K.A., 2020. Reflecting on the impact of COVID-19 on religious tourism and
pilgrimage.(Special Issue: The impact of COVID-19 on religious tourism and
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Seraphin, H. and Dosquet, F., 2020. Mountain tourism and second home tourism as post
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Yeh, S.S., 2021. Tourism recovery strategy against COVID-19 pandemic. Tourism Recreation
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Online
Aref M., How COVID-19 Impacted Travel & Tourism Industry Globally. [Online]. Available
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after-the-covid-19-pandemic-recedes.html/>
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