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

This poster outlines the impact of inflation on Hays Tourism Company, including causes, theories, and reliable sources. It evaluates the background of the company, its products and services, and the period and causes of inflation it has faced in the past. The poster discusses models and theories that can help reduce negative impacts of inflation and increase positive impacts.

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.

Notes
Overview of the organization and their product and services
 The tourism company used to provide and offers the late deals, packages, holidays, flight bookings, car hire, currency exchange
services, ski drivings, etc. This shows that the company is operating well in the market by providing better services to the customers.
They also used to organise the holidays for their various destinations to their customers at the different parts of the world (Ivanov and
Webster, 2020). In the present time it used to have almost 450 branches as this shows that the company has operated and grow well in
the market.
 In 202 the company used to have around 100 employees and made 20 tailor made travel shops in the market of United Kingdom. As
when its about the products and services the company used to provide better services in the market. They used to provide the quality
of service that use to fulfil the expectations and perception of the customers. The chosen company used to provide the quality of
services and the better alignment with the international customer base. This shows that the company by providing the better quality of
products and services attracts more customers that helps them to have better profitability in the competitive tourism market.
Evaluating the causes of inflation that company faced in past year
 In the country like United Kingdom the company has faced lots of struggle in order to find the skilled and talented workers in the
company. As the company is one of the leading retailer which helps the company to have leaders and best employees to have better
work. By having inflation in the market the company has also faced the loss which used to have less employees to work over there
(Viglia and Dolnicar, 2020). There are the sign in the company that shows that the company is facing the shortage of skilled and
trained employees as there was rise in the inflation in the market. At is is seen that the growth rate 2.0% is the reflection to have the
long term inflation rate which has affected the company at greater rate.
 Further it is also seen that CPI inflation of the company was determined was around 0.7% in 2020 and was decreases to 5% in the
next year. This shows that the company was facing problem related with inflation but have improved which has improved the
profitability of company. There are some major causes of the inflation that the chosen company has faced which is described below:
1. Improper monetary policy of the UK government
2. COVID- 19 impact
Research and reliable sources, theories and models which can be used to reduce the negative impacts of inflation and increasing the
positive impacts
There are different range of models and theories which are deal with situation of inflation as well as it results by reducing negative impact to
an organisation. In context to Hays it has been analysed that there are several issues which can be trapped in inflation and affect company
positively as well as negatively.
“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 organisation 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 due to inflation which is affect by having better skill in order to take good adjustment
when it is related to cutting cost. This organizations try to reduced its cost so that it can deal with expenditure that’s is quire needed by boosts
up economy. In order to understand the long impact, it has been analyzed that for chosen company it is related to it has been analysed that
there are 300 hotel introduced in January 2021 so tats it help to cover most of the areas which help to become effectively during inflation.
Also, during that kind of situations customer are ready to pay on the basis of following different types of strategy. In addition to this
diversification is one of the common strategy which is fruitful for organization in order to deal with all kind of situation of inflation. . On the
other side, it is imparted IFRS 16 by company so that it helps to drive better and control over its financial and non-financial aspects. This idea
was implied to reduce the negative impacts in longer run and also driving better outcomes favoring organizational performance. The
government also taken some key steps to help such organizations and the entity has shown its inclination to abide with company.

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