Inflation and its Impact on Virgin Holidays: A Research Project

Foundation Year Research Project
INTRODUCTION
Tourism basically comprises of all the different activities of an
individual staying in or travelling in places outside their usual
environment for not more than one consecutive year for different purposes
such as business, leisure and much more. The Tourism company chosen
for this report is Virgin Holidays. It is a company within the Virgin Group
that basically offers holidays worldwide with destinations such as Africa,
US, Canada, the Indian Oceana and much more. he present report
basically involves an overview of the organization and their services and
products. In addition to that it comprises of the causes of inflation and the
inflation time period that the organization has basically faced in the past.
Moreover, it involves research from reliable sources that helps in
identification of the models and theories which could be used in order to
deduct the negative influence of inflation and also increasing the positive
influence
Overview of the organization and their product and services
The organization Virgin Holidays Limited also known as the Virgin Atlantic
Holidays is a organization within the Virgin Group that basically offers holidays
worldwide with destinations such as Canada and US. The organization was founded in the
year 1985 with its headquarters in Crawley, England. Moreover, the company has
established themselves as a specialist and ski program cruise division called “Virgin
Holidays Cruises”. In its initial times, the enterprise was involved in selling seats on
Virgin Atlantic routes to Orlando, New York City and Miami. The company has grown to
becoming one of the successful and largest long-haul scheduled tour operators in the UK.
In 2020. due to the outbreak of COVID-19, the company announced that the enterprise
will be rebranded as Virgin Atlantic Holidays. The company is quite popular for offering
holidays globally with destinations comprising of Canada and US, the Far East, the
Caribbean, the Middle East, the Indian Ocean and Africa.
Cause and Period of inflation that the organization experienced in the past
The term Inflation basically refers to the increase in the rates of services,
products and prices within the economy. In a situation of inflation, the unit of currency
basically tends to but less services and products when prices are basically increased. In
reference to inflation, these include basically three types built in inflation, push inflation
and demand pull inflation. In case of the most common inflation indexes used involves
consumer price index and wholesale price index. In reference to Virgin Holidays, there are
various factors which resulted in inflation which comprises of increase in factors such as
cost of equipment and raw material, production cost, labour wages and much more. The
rise in demand of particular product basically leads to inflation. The circulation of money
such as cash, bank balance and coins have also faced a increase in economy which is
considered to be the main reason for the inflation. Another reason for inflation is basically