Impact of Inflation on Hays Tourism Company: Causes, Theories, and Reliable Sources

FUNDATION YEAR RESEARCH PROJECT
INTRODUCTION
 Inflation is referred as the rise in the prices that can be termed as the declining
of the purchasing power over the period of time. The rate at which the prices
increase is basically the inflation in the market. This used to have great impact
on the profitability of the company.
 For the current project Hays tourism company is chosen as this company used
to went through the various stages.
 poster will outline the overview of the buisness by describing its products and
services provided by them.
 Further it will include causes and the period of inflation that the company faced
in the past years.
 This report will also put some focus on the reliable resources by using the
models and theories that will help the company to have reduction and negative
impact of inflation.
 At last this poster will also cover the charts and images that helps the poster to
look more attractive and reliable.
REFERENCES
 Higgins-Desbiolles, F., 2020. The “war over tourism”: challenges to sustainable
tourism in the tourism academy after COVID-19. Journal of Sustainable
Tourism. 29(4). pp.551-569.
 Ivanov, S. and Webster, C., 2020. Robots in tourism: A research agenda for
tourism economics. Tourism Economics. 26(7). pp.1065-1085.
 Richards, G., 2018. Cultural tourism: A review of recent research and trends.
Journal of Hospitality and Tourism Management. 36. pp.12-21.
Theories and models
“Contraction monetary policy” used by organization in order to reduce negative
impact of inflation that can be consider as drastic change in the year 2020. During
the time inflation started by taking sharp turn by leading quite higher till year
2021 were range of causes were found. In which covid-19 is one of the biggest
change that affect almost all the industries. Aloes, it become higher cause in order
to consider by predicament in order to become highly essential for company by
applying this model. Also, it helps to provide new monetary policy which
reducing the changes in order to bring more customer as well as attract them
accordingly. In order to grab their attention, it was necessary to offer salubrious
packages (Sharma, Thomas, and Paul, 2021).
In context to “Long term inflation expectations” it is believed that once
inflation take place it may exists for last longer. That is why organization made
that’s kind policy which help for combat on the basis of notions for longer period.
Also, collaboration with more globally operating company help for expand in the
form of branches that can become affluent in nature.
In context to financial statement of organization it has been analyzed that in year
2020 net loss were about 54.2 million euros that’s is jumped to 99.1 million euros
in the year 2021. It was dues to inflation which is affect by having better skill in
order to take good adjustment when it is related to cutting cost.
Overview of the organization and their product and services
Hay Plc. Is the tourism and travel based company that is basically located
in England, United Kingdom. By having research on its statistical data it is
seen that the company is one of the largest retailer company in the United
Kingdom.
The cited company also used to have other tour operator that are TUI and
Jet 2 that used to offer the packages for the holidays to their customers.
They used to provide their better products and services in their travelling.
For the first time the chosen company has started it's their first retail store
behind his mother clothing store as this shows that the company has started
with very short time.
It used to have its headquartered in the UK and this used to have better
travel arrangements in the market of England (Richards, 2018).
Period and causes of inflation the entity has faced in the past
Improper monetary policy of the UK government: This was the great reason of the
having the inflation in the company.
By having the poor monetary policy in the market the company has faced lots of negative
impact and by this there was the great impact on the profitability of the business.
By this the people were not able to have better travelling by having the rise in the prices
of tickets
COVID- 19 impact: This was considered as one of the most major causes as this factor
has affected the overall industries.
As there was pandemic in the market and by this there was rise in the inflation which has
impacted a company lot. It was very difficult for the company to earn revenue as there
was lock down in the market (Higgins-Desbiolles, 2020).
The markets were affected deeply and the chosen company was not able to provide the
better quality of products and services to the customers in the market. It was forced to the
company to have rise in the prices which has affected the target customers.
CONCLUSION
From the above poster it can be concluded that the inflation used to have severe
impact on the profitability of company. Further the poster has evaluated about the
background of the company by evaluating about the products and services
provided by them. Moreover, the report has also discussed the causes of inflation
that the company has faced in the last past years. Moreover, the above project has
also explained about the resources, models and theories that helps the company to
have decline in the negative impact of the inflation and have enhancement in the
positive impacts. At the end the report has explained about the past year charts
and images to have more reliability.