Impacts of Inflation on Jet2 Holidays' Operations and Management Strategies

This research project discusses the impacts of inflation on Jet2 Holidays' operations and management strategies. It covers the causes of inflation, Jet2 Holidays' company background and overview, key operations and markets, and strategies to manage inflation.

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Introduction
Tourism industry have appear as one of the
important drivers of growth among the
service sectors and this industry is the
largest industry of many countries in the
world and the economies of many countries
are driven by their tourist trade (Amir and
et. al., 2022).
Key operations and markets
•the main operations of Jet2 holidays is their airline
service and accommodation to travellers. And they
provide many choices in hotels as they have 1000s
hotels from two star to five star and runs their airline
in 65 destination which fly from 10 UK airports.
•Tourism industry is a large industry and every one
now a days travels for at least once in a year and
every person is of different budget so jet2 holidays
provide them huge choice among 1000s hotels which
are of different category.
Conclusion
From the above information it has been
concluded that inflation decreases the power
of consumers by increasing the prices of
goods and services. The performance of
workforce is getting lower down because
COVID-19 has impacted the activities and
operation of tourism industry, increase in
rates of flight tickets and many more. Covid
-19 and Russia-Ukraine war also lead to
inflation which caused many of the
customers are avoiding taking tourism
services. .
Inflation management strategies
deployed
Inflation has been a monetary policy
and one of strategy to control inflation
in the particular country. Tourism
generates addition demand for land and
inflation occur because of land values.
In present inflation is effecting every
business (Trunin and Perevyshin, 2022).
For controlling the quantity and quality
of credit central bank of any country
they adapt some methods such as
selling security in open market, raises
the reserve ratio , increasing the rates of
bank for regulating the consumer credit
adopting a range of selective credit
control measures and increases the
margin requirements. They can
managed it if government will take
interest to diminish unnecessary
expenditure on non- developed
activities. It mainly focuses on private
expenditure which is dependent on
demand of government for goods and
services and this strategy should be
supplemented by taxation.
Company background and overview
•Jet2 holidays was founded in 2007 as a
subsidiary of Dart Group PLC and are the
second largest tour operator among other tour
operators in United Kingdom.
•Jet2 holidays is at second in the list of largest
tour operators in the United Kingdom and
their Key focuses is on airline and
accommodation.
References
•Amir, M. and et. al., 2022. Asymmetric relationship of environmental degradation and economic growth with tourism demand in Pakistan: evidence from
non-linear ARDL and causality estimation. Environmental Science and Pollution Research, 29(4), pp.5891-5901.
•Han, W. and et. al., 2022. Chinese cultural values influence residents' sense of empowerment at sustainable tourism destinations. Social Behavior and
Personality: an international journal, 50(2), pp.1-15.
Inflation is that time period in which price of the service and product increase whereas purchasing power of customers get decreased. At
this phase, customer tends to purchase their need instead of their wants. That's means, if price of the product or service get increased
then low price product which could be affordable as they can purchase more product if inflation rate is lower. There are various causes
that lead to inflation. Few of these causes are discussed below:
Demand-pull inflation
Cost push inflation
Increased supply of the money
Inflationary periods and main
causes
Impacts of inflations on company’s operations
and performance
Due to inflation, the prices of tourism services and
holiday packages increased and because of this
customers avoid travelling and taking use of tourism
companies at the time of inflation. Now a days
customers became price sensitive and they prefer
those tourism companies and holiday packages
which provides similar services at lower prices . In
situation of inflation, tourism company's customers
can shift to another travelling company and this
impact negative on their growth (Valadkhani,
Nguyen and Chiah, 2022). Whereas Jet2 holidays
tries to cut their tourism services and airline charges
and give combo packages to their customers and try
to reduce salaries of their employees to lower the
overall prices of tourism service which they offer to
travellers and application of this may reduce the
performance of their employees and they may feel
dissatisfaction in doing work and this will make
harder for companies to retain their employees for
long time (Zheng, and et. al., 2022).
Inflation is that time period in which price of the
service and product increase whereas purchasing
power of customers get decreased. At this phase,
customer tends to purchase their need instead of
their wants. That's means, if price of the product
or service get increased then customer have to
spend more amount of the money that decline
their purchasing power. It creates situation of the
inflation (Rasool, 2022). Methods through which,
inflation rate is measured mainly based on the
month and year by getting an average rate of 12
month, as per the customers. They prefer to buy
low price product which could be affordable as
they can purchase more product if inflation rate is
lower. There are various causes that lead to
inflation. Few of these causes are discussed
below:
Demand-pull
Cost push inflation
Increased supply of the money