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

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.