Inflation's Influence: Analyzing Tourist Companies' Decision-Making

This research project examines the impact of inflation on the decision-making and operations of various tourist companies. The report begins with an introduction to inflation, its causes, and its effects on businesses. It then delves into the impact of inflation on the tourism industry, analyzing statistical data and presenting both positive and negative impacts. The study also identifies successful strategies employed by tourist companies to overcome inflation challenges, including wage and price controls, managing demand and supply, and investing in technology. The report concludes with a summary of findings and references to support the analysis, providing a comprehensive overview of inflation's effects and potential solutions for the tourism sector. The project aims to provide a better understanding of inflation and its effects on tourist companies.

Research Project

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Research of inflation and how this event can occur within an economy.....................................4
Impact of inflation has had in recent year...................................................................................4
Evidence of both the negative and positive impacts of inflation.................................................6
Identifying solutions....................................................................................................................7
GANTT CHART.........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Inflation in any economy is related with rise in prices due to certain factors that are
existing outside the control of any business. Also, the present report will analyse the main
causes of inflation and will identify what are the factors that will create problems in working of
tourist business when the inflation is high. Furthermore, study will also analyse the impact of
inflation through presenting various statistics report so that better understanding might be
gained. Also, through this study the major positive and negative impacts of inflation will also
be discussed in this report so that more accurate knowledge might be provided. Lastly, the
study will provide list of tourist companies that were successful in overcoming the problems of
inflation within the country in best of manner.
AIM: The aim of the current investigation is to analyse the impact of inflation on decision-
making and working of various tourist companies.
Objectives:
 To develop the understanding about inflation
 To analyse the factors and impacts that causes inflation within the economy and tourist
companies
 To evaluate the positive and negative impacts of inflation on tourist industries
 To recommends the best strategies that would help the economy and tourists industries to
cope up with inflation in future working
Thus, the report will help in evaluating that there are various causes through which
inflation with country could occur. However, it depends on the tourist and other industries to
identify how such changes within the country might be coped up through suing best of
techniques (Tien, 2021). Moreover, there are certain ways that have been proved very

successful that would allow the small business and tourist companies to survive in such
challenging situations in most effective manner. Also, the government of any country plays very
crucial role in controlling the situation like this so that it does not create much negative impact
on people live and their standards of living in negative manner. Hence, inflation needs to be
monitored by various industries' on regular basis so that better action and plan might be
undertaken by the business for future conduct of activities.
MAIN BODY
Research of inflation and how this event can occur within an economy.
Inflation is condition of general rise in the prices of various goods due to several
conditions over a given period. Also, this situation is typically very broad measure that increases
the cost of living among the people. Furthermore, this event could occur within the economy
when there is rise in the prices of the production cost such as wages and raw materials. Also,
during such kind of condition the consumers are ready to pay higher prices for certain products
to fulfil certain needs in best of manner. Also, having inflation time for longer time frame only
creates problems for the overall economy as it decreases the purchasing power among the
customer and forces the business to cut down the prices' so that more sales could be done within
the target markets (Kırca and Özer, 2020). Moreover, tourism industry are also very much
affected if there is high inflation rate within the country as it would decrease the overall number
of tourist visits within the country. Thus, such kind of inflation rate would only reduce the
overall consumption rate among the people that is not good for development of the country.
Impact of inflation has had in recent year

Thus, from the above chart it can be seen that inflation had been impacted all the businesses in
UK at much larger level. Also, through having the higher inflation rate there was increase in the
prices of the goods that crates much bigger problems for every small or big business operating in
UK.
All industries 01/04/22 01/05/22 01/07/22
Inflation of goods and
services prices
23.8 25.8 26.2
Energy prices 20.6 19.5 19.9
Competition 3.2 5 5.1
Taxation 7.6 4.9 5
Supply chain
disruption
5 4.9 3.3
Other 2.7 3.1 3.2
Business rates 3.6 2.7 2.1
Exchange rates 1.5 1.9
Interest rate 2 1.7 1.4
Not sure 10.4 10.1 8.3
No concerns for my
business
19.4 20.8 23.6
Thus, more than 26% business reported input price inflation as their major concern for
July 2022. This means that due to higher inflation within the country there were the problems of
importing and exporting variety of goods and also there was reportedly large disruption in the
overall supply chain of the various industries (Shaari, Ahmad and Razali, 2018). Also, in such
type of situation government also become quite active to solve the immediate issues like inflation
so that things could be brought into the normal. Furthermore, various strategies are been
developed so that such challenging situations could be overcome through positive approach..

Evidence of both the negative and positive impacts of inflation
Inflation is not good for any country but even though it might create some positive
impacts on the small business which are been described as follows:
Helps in increasing the production: Small business which are operating in inflated
regions are benefited from manufacturing large scale production as business wants to earn more
amount of revenues. Furthermore, with increased demand there would be large scale production.
More employment: When there is high inflation in any particular country than there are
more employment opportunities generated within the country. Furthermore, through more
employment people are able to raise the standards of living during the certain point of time. For
example: Tourism sector would create more employment opportunities for all the people that are
unemployed thus improving their way of living.
Better income: With high percentage of inflation within any country it can be seen that
income levels are also been increased that allow the people to purchase variety of thing in best of
manner (Nasir, Huynh and Vo, 2020). For example: It would allow various tourist industries to
earn good amount of revenues from the public due to rise in various prices.
Though inflation has some positive impacts there are also certain negative impacts that
are caused due to higher rates within the country. Some of them, are been described as follows:
Inequality of income within the country: Due to higher inflation people within the
country have unequal income distribution that causes problems of gaps among the people that is
not good for their growth and development. For instance: In the tourism sector it would create
problems in terms of offering value services to visitors that are coming form different regions
Upsets planning process: Inflation within the country also upsets the overall planning
process within the country. Furthermore, planning of various resources requires higher level of
stability that is not possible when economy is growing at faster rate in case of inflation during
certain point of time.
Less savings: Inflation is situation that does not help the country people to save lot of
money for fulfilling their certain needs. Also, when the savings are fewer standards of living is
also impacted negatively (Wollie, 2018). Thus, in context of tourism industry it can be said that
there would be fewer people that would be interested in making travelling plans due to
shortage of funds.

Identifying solutions
To ease the overall negative impact of inflation on country there are certain ways that is
been suggested to the tourism industry and one of the most important solution is having wage
and price control that would help the tourism industry to work in the most systematic manner.
Thus, from the above chart it can be said that the inflation rate has been rise to higher
level in the US economy that has created problems of operations. However, through the
government proper contractionary fiscal policy has allowed in increase tax rates on tourism
that in turn had reduced total government spending to control situations like inflation. Thus, such
policies are very effective in bringing the situation back to the normal so that certain work could
be carried out in bets of manner. Also, in recent instance it was found out that Bindlestiff Tours
travel company in US has also adopted the policy of managing demand and supply within the
country so that situation like inflation could be controlled in most effective manner in the future
(Kim and Mehrotra, 2018). Furthermore, Expat explore travel company in UK had also started
investing in technology to cope with the inflation rate within the country so that better gains
might be ensured for the future and in such challenging times.

GANTT CHART

CONCLUSION
From the above report it can be concluded that inflation within any country is not big
factor until the tourist’s companies adopted the best policies for working. Further, the study had
presented detail data relating to cases of inflation within the country through presenting various
statistics and analysis. Moreover, negative and positive impact of inflation had also been
discussed under this study in detail so that better understanding might be gained. Lastly, the
study had presented best solutions that had been adopted by the tourist industries and
government to cope up with situation of inflation within the country. Also, certain real life
examples relating to the tourist industry had also been covered under this report.

REFERENCES
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