Impact of Inflation on Hays Travel: Causes, Periods, and Solutions

This research project discusses the impact of inflation on Hays Travel, including its causes, periods, and solutions. It provides an overview of the organization and its products and services, as well as theories and models that can be used to reduce the negative impacts of inflation. The report identifies various causes of inflation, such as Covid-19, poor monetary policy, and global and domestic supply chain failure. The report also discusses the contraction monetary policy and long-term inflation expectations as models that can help reduce the negative impacts of inflation. The report concludes by discussing the diversification strategy used by Hays Travel to maintain its organizational performance and efficiency.

FUNDATION YEAR RESEARCH PROJECT
INTRODUCTION
 Inflation is the general prices rise in any country due to several
reasons.
 Furthermore, such type of condition has impacted badly
especially on the Hay UK travel company that has lost number
of customers in short duration.
 Also, current poster will be discussing the organization and its
products and services.
 Furthermore, period and causes of inflation will also be
analyzed in detail.
 Lastly, theories and models which can be used to reduce the
negative impacts will also be discussed under this poster.
REFERENCES
 Boneva, L. and et.al., 2018. The effect of unconventional monetary policy on
inflation expectations: evidence from firms in the United Kingdom. 45th issue
(September 2016) of the International Journal of Central Banking.
 Bresser-Pereira, L. C., 2020, July. Financing COVID-19, Inflation and the fiscal
constraint. In Forum for Social Economics (Vol. 49, No. 3, pp. 241-256).
Routledge.
 Athari, S. A. and et.al., 2021. The (Un) sticky role of exchange and inflation rate
in tourism development: insight from the low and high political risk
destinations. Current Issues in Tourism, 24(12), pp.1670-1685.
Theories and models
There are range of models that might be used so that problem of
inflation could be solved to larger extent for the company like hays
travel. Furthermore, over the time Hay travel had faced several issues
that has caused the business to suffer a lot especially in times like higher
inflation. Moreover, in certain report it was identified that inflation rate
was around the 3.20% in 2021 than compared to the 2.85% in 2020
(Van Tuan and et.al., 2021). Thus, such kind of situation only makes
difficult for the firm to plan better activities for the future as there is
limited availability of funds and resources.
Furthermore, the models that are been used to reduce the overall
inflation is the “Contraction monetary policy” in which negative
impacts of the inflation might be reduced to greater extent. Also, this
policy is method that helps in reducing supply of money in the economy
through lowering the prices of bonds and interest rates. Thus, through
such steps the firm would be able to earn more amount of revenues
through attracting newer customer segments as the prices of the services
would be turned lower (Scarlett,2021).
Overview of the organization and their product and services
Hays travel is UK based independent travel agency in tourism
sector that is specialized in providing variety of quality holidays
and is known for excellent customer service. Furthermore, the
organization came into existence in the year 1980. Moreover, the
company had around 6,000 agents worldwide that are good
enough to book over 1.5 million room and are also working very
hard to achieve the goals of the organization (Athari and et.al.,
2021). Also, the company has been able to achieve the goals
through adopting the collaborative approaches but even though
in last years the company had been gone through several
changes that has made the working very difficult.
Period and causes of inflation the entity has faced in the past
Covid19- It is supposed to be the biggest cause which led the economy
face the horrendous situation of inflation. Since it caused severe
repercussions to the economy, there has been down fall for the business.
Entire economic system suffered a backdrop which drove the economy
a great recession. It is intended that if there is recession then the
possibilities of being trapped in inflation in quite higher. The pandemics
impacted both internal and external operational capability of the
economy which ended up being in the situation of inflations (Boneva
and et.al., 2018).
Government's poor monetary policy: Hays plc faced several severe
impacts of the inflation, and one of the primary reasons behind this, was
the improper monetary policy for the economy by the government.
During the time of inflation, government should have looked after the
infusion of money in the economy which could have dealt with the
currency circulation in the commercial segment.
CONCLUSION
From the above poster it can be summarized that long duration of
inflation has affected organization in negative manner in term of
revenues and its working. Also, the inflation period had come with
range of negative impact such as decrease in demand of hotels, lack of
creative ideas, poor feedback from customers, and much more.
Furthermore, the report had identified about various causes of inflation
and factors behind it. Lastly, the poster had applied certain list of
theories and models that might be helpful for the Hay travel to
overcome certain challenges relating to inflation through much positive
approach so that there are no negative impacts on working.

Notes
Overview of the organization and their product and services
 Also, the company is having strong team that is known for offering best travel packages covering the best areas around the world like New York, Greece, Turkey and
much more. The major products and services includes providing variety of travel services both nationally and internationally so that best of client services might be
provided. Furthermore, the company is also focused on its international customer base so that more revenues could be generated in the future through providing its
efficient services. Moreover, company is also known for its luxury offerings and therefore there is higher customer reliability and loyalty among the people that are part
of brand over the years (Hang and et.al., 2020). Also, the company is collaborating with some international brands that would help the firm to plan innovative activities
within its existing services so that more customers might be added within the brand.
Period and causes of inflation the entity has faced in the past
 There has been range of reasons which were prevailing in the economy which ultimately led Hays Plc to occur losses. Hays plc is a large scale organization which was
securing profits until inflation hit the business along with a lot of underlying reasons which made the business incur losses. For instance- Due to severe implications of
Covid-19, hyper failure of supply chain etc. led the economy to be in the predicament of inflation. It was the period ranging from the year 2020 to 2021. In this
duration the organization has experienced bitter test of inflation.
 Covid:19- It is supposed to be the biggest cause which led the economy face the horrendous situation of inflation. Since it caused severe repercussions to the economy,
there has been down fall for the business. Entire economic system suffered a backdrop which drove the economy a great recession. It is intended that if there is
recession then the possibilities of being trapped in inflation in quite higher. The pandemics impacted both internal and external operational capability of the economy
which ended up being in the situation of inflations (Boneva and et.al., 2018).
 Government's poor monetary policy: Hays plc faced several severe impacts of the inflation, and one of the primary reasons behind this, was the improper monetary
policy for the economy by the government. During the time of inflation, government should have looked after the infusion of money in the economy which could have
dealt with the currency circulation in the commercial segment. If an effective monetary policy was in place, travel industry might not have faced such blockage of the
profits which impacted the business operations. There was severe inflation which was caused by the lack of proper monetary policy in UK.
 Global and domestic supply chain failure: in times when world is connected and has become like village in itself, yet businesses globally have seen massive supply
chain failure. The major reason behind this was the lack of assessment of demand and supply. Demand and supply forces act as the vital aspects of driving the
economy (Bresser-Pereira, 2020). World trade failed to keep the supply chain in place and demand for some products were extremely high, whereas for some products
demand was low. This resulted in market failing constantly with the poor supply chain management. There was difficulty in conducting the daily activities for the
businesses due to worse supply chain management.
 Hence, it can be said that there are many underlying reasons for the occurrence of inflation including the retail inflation. Covid-19 impacted the daily smooth operation
of the business and it actually pushed inflation higher. In an economy each factors are discreetly connected with the other factors. Hays plc is one of the major
organization which has been serving the clients yet it started to incur the losses and lately due to factors like inflation. Poor supply chain management and Covid-19
carrying out the daily business operations has been difficult for the company.
Research and reliable sources, theories and models which can be used to reduce the negative impacts of inflation and increasing the positive impacts
 Moreover, this policy is of major helps especially in tough time like pandemic as it would the firm to consume variety of goods and services in most efficient manner
 Also, there is another model that is “Long term inflation expectations” that believes that once the inflation takes place than it would last for much longer time frame.
Also, some organization have already been considering this policy so that they are capable enough to cope with certain long term inflation problems in much easier
manner. Moreover, in the context of Hay travel company it can be clearly seen that the company overall net profits had been impacted in much negative manner over
the years (Meo and et.al., 2018). Also, during 2021 it was seen that 1873.5 was the total asset of the firm which was very less compared to the 1,939.9 in 2020. Thus, it
can be said that inflation has impacted the firm in negative manner. Moreover, firm has reduced its costs so can deal with the situation and also target markets in best
possible way through its various policies.
 Moreover, to keep close eye on the long term impacts the company has introduced new diversification strategy where creative ticketing and used extensive market
leading technologies were used so that company could work in those areas where inflation was not impacting much and customers were ready to pay more. Thus, such
strategy were been taken by the firm so that it is able to maintain the overall organizational performance and efficiency so that unexpected revenues might be e arned
within the specified time period. Also, the company through using this strategy would be able to plan better travelling packages in the future for all its target audiences
located in different regions of world. Hence, use of theories and better analysis of the market had helped the firm to plan better activities so that more interesting
travelling packages might be provided to those people that loves to travel to various location during the whole year.
REFERENCES
 Hang, T. T. B. and et.al., 2020. Where Beta is going–case of Viet Nam hotel, airlines and tourism company groups after the low inflation period. Entrepreneurship and
Sustainability Issues, 7(3), p.2282.
 Van Tuan, P. and et.al., 2021. Marketing Strategies for Tourism and Digital Tech Applications in Tourism Industry-A Case of Och Tourism Corporation in
Vietnam. Design engineering, 7.
 Scarlett, H. G., 2021. Tourism recovery and the economic impact: A panel assessment. Research in Globalization, 3, p.100044.
 Meo, M. S. and et.al., 2018. Asymmetric impact of oil prices, exchange rate, and inflation on tourism demand in Pakistan: new evidence from nonlinear ARDL. Asia
Pacific Journal of Tourism Research, 23(4), pp.408-422.