Impact of Inflation on Tourism Industry: Strategies for Overcoming the Challenge - Jet2 Holidays Case Study

This poster explores the impact of inflation on the tourism industry, with a focus on Jet2 Holidays. It discusses the causes of inflation, its impacts on company operations and performance, and strategies for managing inflation. The poster also provides an overview of Jet2 Holidays' background and key operations, as well as their markets. References are included for further reading.

A tourism company that has been affected by inflation
in the past and how they overcome this challenge

Introduction
Tourism industry involves many industries such as
travel companies, hospitality, tourist destinations and
many more mainly focuses on tourism, this industry is
the fastest growing industry among other industries in
the world. Tourism industry faces many ups and downs
as it mainly depends on seasonal operation. The
purpose of this poster is to analyse the impact of
inflation upon a tourism organisation and the ways to
overcome this challenge.
Key operations and markets
Key operations of Jet2 holidays is to provide airline
services and provide accommodations to their
customers. They airlines fly from 10 airports in UK to
65 destinations and they provide huge choice of 1000s
of two to fives star hotels.
Conclusion
By concluding this topic, it has been found that the inflation in
a country leads to the high rate prices of products and services
by lowering the buying power of the buyers. Taking in view of
the current scenario the pandemic has impacted greatly in the
rate of inflation as there were increase in the demand of the
goods that resulted in the high prices of the commodity
including all the sectors like tourism and travelling. It hindered
the public to take services for the purpose of consumption.
Inflation management
strategies deployed
In country like UK, the major cause of inflation
due to low rate of supply as per the demand. It
can be solved by increasing the supply of the
commodity along with the reduction in the
earnings to control the collective demand. There
must methods applied for the controlling the
inflation and one of the method is monetary
policies used within the country. The methods
adopted by the banks to control the volume of
credit by increasing the rates, the reserve ratio,
by selling the securities in the open market and
working on the profit margin requirements. The
inflation can be balanced if the non-development
activities are less encouraged and prioritising the
expenditure of government requirements and this
should be carried through taxation.
Company background and
overview
Jet2 holidays is the second largest tour operator in the
united kingdom which was founded in June 2007 as a
subsidiary of Dart Group PLC. It is headquartered in
Leeds, United kingdom and they mainly focuses on
airline and accommodations. Jet2 Holidays is the third
largest airline in UK, from starting their first flight in
the year 2003 to now flying from 10 UK airports to
more than 65 destinations across Europe and beyond.
References
Laidler, D.E. and Parkin, J.M., 1977. Inflation: a survey. In Surveys of Applied Economics (pp. 169-
237). Palgrave Macmillan, London.
Driffill, J., Mizon, G.E. and Ulph, A., 1990. Costs of inflation. Handbook of monetary economics, 2,
pp.1013-1066.
Hahn, F., 1985. Money and inflation. MIT Press Books, 1.
Inflationary periods and main causes Impacts of inflations on company’s
operations and performance
In the sector of travel and tourism, the airline tickets increase due
to the increase in the inflation rate within the country. This can
end up in the unwillingness of the customers by avoiding to
travel. Customers everywhere opt for the purchase in the less
price with more products so they attract to the services where
there is less price. In context to the Jet2 holidays, the prices tend
to be lower according to the customer affordability at some point
of time. if the prices of tickets are sold lower then it affects the
employees as the salaries can be lowered. This results in the
dissatisfaction of the employees and can cause the ineffectiveness
in the employee performance which may lead to the employee
turnover in the company.
Inflation is a period of time where the rise of product and services
increases while decrease in the purchase of goods by the
customers. There are some of the causes that lead to the increase
in the rate of inflation in the country:
• Demand-pull inflation:
• Cost-push inflation:
• Increased supply of money