Impacts of Inflation on Tourism Industry: Strategies for Virgin Holidays

PROJECT
(“What are the typical impacts that
inflation can have on the tourism
industry and what solutions, to ease the
negative impacts, can be
implemented?”)

Table of content
INTRODUCTION ........................................................................................................................3
Background information of topic ................................................................................................3
Research Aim ..............................................................................................................................3
Research objectives..................................................................................................................... 3
Research Questions .....................................................................................................................3
Research Rationale ......................................................................................................................4
LITERATURE REVIEW ............................................................................................................5
The concept and causes of inflation within the UK tourism industry......................................... 5
The positive and negative impact of inflation can have on the Virgins Holidays...................... 6
Strategies that can help Virgins Holidays to reduce negative impact of inflation ......................7
RESEARCH METHODOLOGY................................................................................................ 8
CONCLUSION............................................................................................................................. 9
REFERENCES ...........................................................................................................................10

INTRODUCTION
Background information of topic
Inflation is the term which means rise in the prices which can be can cause reduction in
the purchasing power of the consumer. It can be referred as the rate through which reduction in
purchasing power can be display by the increase in average price of a basket of selected products
and service within a given period of time (Herman, 2022). It impacts an economy adversely and
significantly. Higher rate of inflation in the economy can be riskier whereas lower or smaller
inflation rate may help economy to derive growth. Many industries and businesses are also
getting affected from the impact of inflation. Therefore, present project is conducting to analyse
the impacts on the company and suggesting strategies for reducing the negative impact on their
business. The selected organisation of this project is Virgin Holidays which provides tourism
service to their customers.
Research Aim
To analyse positive and negative impact of inflation on the UK tourism industry as well
as suggest strategies for reducing its negative impact. “A study on Virgins Holidays”
Research objectives
 To understand the concept and causes of inflation within the UK tourism industry.
 To analyse the positive and negative impact of inflation can have on the Virgins
Holidays.
 To suggest some strategies that can help Virgins Holidays to reduce negative impact of
inflation.
Research Questions
 What is the concept and causes of inflation within the UK tourism industry?
 Determine the positive and negative impact of inflation can have on the Virgins Holidays.
 What are the some strategies that can help Virgins Holidays to reduce negative impact of
inflation?

Research Rationale
The main reason for doing research in this topic is to gain knowledge about the negative
and positive impact that inflation may create on the businesses (Zherlitsyn, 2020). Higher
inflation rate of an economy decreases the purchasing power of consumer, due to which the sales
of the company is also got affected.