Tourism Industry Innovation and Challenges

This assignment delves into the transformative impact of start-ups and co-creation on the tourism industry. It examines how these forces are challenging traditional business models and driving innovation in various aspects of tourism, including rural tourism, medical tourism, and sharing economy ventures. The assignment also analyzes the potential benefits and challenges associated with this shift, highlighting the need for adaptability and collaboration in the evolving tourism landscape.

Skills for Travel and Tourism
Start-ups

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Skills required for successful entrepreneurship....................................................................1
1.2 Self appraisal that help to know strengths and weakness for entrepreneur...........................2
M1: Approaches to study various skill and characteristic of entrepreneur.................................4
D1: Evaluate strengths and weakness though various range of measures..................................4
TASK2.............................................................................................................................................4
2.1 Successful entrepreneur in relation with travel and tourism.................................................4
2.2 Evaluating factors that help entrepreneur to become successful...........................................5
M2: Relevant theories or techniques related to entrepreneurial enterprises...............................6
D2: Responsibility for managing various activities....................................................................6
TASK 3............................................................................................................................................7
3.1 Source of finance available to travel and tourism.................................................................7
3.2 Develop business plan for success of travel and tourism context.........................................8
3.3 Business plan for travel and tourism start up project............................................................8
M3: Appropriate approaches to develop business plan...............................................................9
D3: Critical evaluation of success of proposed business project................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Travel and tourism is an important aspect of any industry that deals with product,
structure and operations those are associated with tourism industry. It includes various tour
operators, airlines and other hotel industry (Cheng, 2016). It equips variety of transferable skills
such as leadership, communication and target customer toward their business. In this regard one
of the major company Thomas cook of UK is known for best tours and travel company that
serves around all over the country. The project report consist of various skills and characteristic
of required to become entrepreneurship.
A self appraisal is design to identify strength and weakness for the development of
benchmarking as successful part of tours and travel industry. One of the successful entrepreneur
strategies are being evaluated under this project. Various source of finance and support are
available in support of project under taken. For start up business it need to create business plan in
relation with travel and tourism.
TASK 1
1.1 Skills required for successful entrepreneurship
Entrepreneur traits is a kind of ability to create an opportunity and create something
where other have not reached (Cloutier, 2012). An individual have a state of mind that explains
overlooked place and put them at starting stage of innovation and rising fields. They come out of
various geographical location and social classes as well as education level. Some traits are
explain below those are related to increase moral and profitability of and entrepreneur associated
in the field of travel and tourism.
 Tenacity: This type of traits are known through their names like perseverance,
persistence, determination and many other things. It is a kind of holding an ideas or
things very strong. As travel and tourism sectors is depend most on type of facilities
provided by the company.
 Passion: For doing any kind of work an entrepreneur need to have passion that whatever
decision will be taken can create positive results for the company. It will be helpful for
the company to create more opportunities for other and solve problems of customers and
any other people those are going use the facilities of travel and tourism sectors.
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 Tolerance of ambiguity: It is a kind of risk taking ability of a person that to remain with
stand in any circumstances of uncertainty and potential failure. There are various kind of
situation that can be come in front of people at that time controlling ability of fear can be
come into account (Egger, Gula and Walcher, 2016).
 Self belief: For any business self belief is a key component of entrepreneur traits that has
to be always their to face any challenges put in front of them. Whether related with travel
and tourism, or customer satisfaction toward the industry.
Skills of entrepreneur:
 Resiliency: This is the skills by which going concern of the industry will be ensured in
spit of challenges that will be faced by it.
 Focus: The long term vision are to be forced so that target should be achieved in allotted
time period.
 Search and manage people: It is a kind of skill that strive a guarantee that company is
recruiting right kind of people those are having inner capabilities to performer well in
industry (Ervina and Agoes, 2015).
 Long term investment ability: Future planning ability should be their in entrepreneur
should that company productivity can be achieved
1.2 Self appraisal that help to know strengths and weakness for entrepreneur
SELF-ASSESSMENT FORMAT
SECTION 1: Personal Information
Name: …............................. Employee Id: ….............
Age:.....................................
Company Name: …............................
Company Address:..............................
Performance Year: .............................. Date completed: …..........
SECTION 2: Self- Assessment
It contains information about entrepreneur trait and skills that are possess those are
related with self appraisal.
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1.1 What were major achievements in the past year?
Ans:..................................................................................................................................................
..........................................................................................................................................................
1.2 How have you used your skills in solving problems of customers?
Ans:..................................................................................................................................................
..........................................................................................................................................................
1.3 What are the areas by which customers will be provided maximum satisfaction?
Ans:..................................................................................................................................................
..........................................................................................................................................................
1.4 Is their any additional Skills and characteristic that would help you more effectively
perform the role as entrepreneur?
Ans:..................................................................................................................................................
..........................................................................................................................................................
1.5 What skills or qualities do you expect to accomplish during coming year?
Ans:..................................................................................................................................................
..........................................................................................................................................................
1.6 List at least five or more other skills you like to do or are great at?
Ans:..................................................................................................................................................
..................................................
1.7 What preparation do you done before coming in travel and tourism industry?
Ans:..................................................................................................................................................
.............
1.8 Did you follow tips or any kind of guidelines from a successful entrepreneur before entering
into this business?
Ans:..................................................................................................................................................
..............................
1.9 What do you think are the salient characteristics, attitude and skills that would made you
successful in your travel and tourism industry?
Ans:..................................................................................................................................................
.....................................
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Strengths:
 It will help to gain competitive advantages in travel and tourism sectors.
 Co-ordinative and quick learner in respect to enhance productivity of a particular industry
(Farrell and Russell, 2011).
Weakness:
It is an important aspect of travel and tourism industry that help to detract from the value
that offer or place in order to competitive disadvantage.
M1: Approaches to study various skill and characteristic of entrepreneur
From above mentioned various traits and skills that are being possess by the an successful
entrepreneur in relation to travel and tourism industry. There are various approaches which can
be important to analysed these skills and characteristic. Some of them are economic theories that
deals with development of business. Psychological traits approaches deals with personal qualities
and knowledge that an individual carry in their operations. Other approaches are social behaviour
approaches that are related with the social factors of environment that would help them to make
effective and efficient strategies in success of tourism industry (Hallem and Barth, 2011).
D1: Evaluate strengths and weakness though various range of measures
From the above used strength and weakness it can be measure various aspects of
entrepreneur in relation of comprehensive review of a theoretical and empirical concepts as non
conventional prospective. Its main contribution are associate with the designing of an effective
system that can indicate an entrepreneur qualities and skills and help to gain competitive
advantages. It sometime help to fill gaps among various theories of entrepreneurship on the basis
of data and information available for evaluating the performance in travel and tourism industry.
Services should be improvise through overcoming our weakness and to take corrective decision
regarding it (Iversen and Jacobsen, 2016).
TASK2
2.1 Successful entrepreneur in relation with travel and tourism
One of a great successful entrepreneur Thomas cook who is a British businessman that
best known for modern tourism. Cook left his school at the age of 10 and started operating in
various company (Kathan, Matzler and Veider, 2016). It was first time advertise excursion train
in England. In early 1860 he ceased to conduct tours and become an agent for sale of domestic
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and overseas travel tickets. After many times it passed to cooks grandsons in 1899. and in 1972
the company rename fully as Thomas cook AG. One of the largest travel company in the world.
The first experience of international travel and tourism sector a great experience for Thomas
cook. He never believe that concepts of travel agent who just book their tickets though various
travel consultant. There are various strategies those are use by successful business in relation of
travel and tourism. Some of them are;
 They are clear about who their customer: The most important strategies of Thomas
cook is that they know about their customers or target those market segment which are
going to use the facilities of Thomas cook. According to their income they have decided
to plan their trip.
 Not rely on single strategies: Social median are been grate concern regarding any
business. A successful business is mostly based on strategies adopted by entrepreneur in
relation to previous one. So that it would not destroy objectives set by the company.
 Very simple: It is time when every thing has to be very simple and fast so Thomas cook
target the future growth of their business by using appropriate strategies that would
benefit them in coming time.
 Identify the problem, not solution: The main objective of Thomas cooks is to find out
the problems those are associate with travel and tourism. Is any kind of difficulties faced
by customer are to be analysed according to it appropriate solution can be provided.
2.2 Evaluating factors that help entrepreneur to become successful
There are various factors which are responsible for making appropriate decision
regarding success of a business enterprises. Because travels and tourism industry is an important
aspect that provide more importance to its customers. If services are not satisfied it will lead
serious consequences to that particular industry (The World Travel & Tourism Council. 2017).
The most important factors for the success of Thomas cook was the team working ability
and personal management skill that are implementation by owner of the company. He was able
to manage and motivate her team in such a manner that treat customers in best manner. It is best
known for best facilitates should be provided to its customers so that they use to travel with us.
One of the other factors is investing skills and creativity of Thomas cook and its team members.
A successful entrepreneur is one who provide best solution that are more demanded by the
customers.
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 Challenges and responses: The biggest challenges come in front of Thomas cook industry
was t get trust and faith of operators those are operating at various locations. It is said to
be the most important because customer handing is big task for travel agencies. In order
to make system work properly owner of Thomas cook make sure that a team would go
and check regular at various location about all arrangements.
 Creativity: It is said to be an important aspect that come in front of Thomas Cook that to
make creativity in their travel and tourism plan. It can be done through creating various
discounts and travel package offers to their regular customers.
 Risk Tolerance: Results don't come without taking any kind of risk. The opportunity to
create employment for potential people are concern factors. That are to be evaluate by
owners of the company and created such kind of chain.
M2: Relevant theories or techniques related to entrepreneurial enterprises
There are various theories like sociological theory that would help to boost social culture
of an entrepreneur. It combine various believes, religious, customs and behaviour of individual in
a society. Other theories are psychological theory that is based on supply of individual with
necessary skills and characteristics. It is designed through self reliance and setting a particular
standard of quality in the field of travel and tourism. Some of other theories are also their like
innovative theory that help to bring change in travelling industry by bringing variety of changes
in facilities and offers.
D2: Responsibility for managing various activities
As it has been observed that successful entrepreneur can be only based on ideas and risk
taking ability in their business. In the above case Thomas Cook is the person who alone
transformed the travel and tourism industry (Thomas, Shaw and Page, 2011). There are various
role and responsibilities which are to be carry in organising various activities of company. Like
leadership responsibility are important to guide its team member in relation to success of tourism
industry. A company is totally depend on customer needs and requirement in relation to provide
superior services to them. Other responsibilities are performance management of travel
department that proper co ordination among each department should be their to provide better
results for the company.
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TASK 3
3.1 Source of finance available to travel and tourism
Finance in an important part of any business that help to manage its daily operations.
Mostly travel and tourism sectors are funded through ministry of tourism that provide funds for
tourism business, but has a tourism demand scheme that helps small sectors to invest in
infrastructure development. There are mainly two sources from which fund are available fro
travelling sectors.
Internal sources:
 Owners capital: These are said to be personal capital those are invested by owners of
business in their own business. Most of risk and profit is being shared by owner and
members only (Tangeland, Vennesland and Nybakk, 2013).
 Venture capital: It is said to be that capital those are invested to start a new project in
relation to any business but if any portion of travel and tourism industry is starting a new
unit they have a need of venture capital.
 Debt Financing: It is a techniques that is raised capital though working capital or capital
expenditure by selling bonds, bill or individual investors.
 Internal retained profit: It is internal source of a business for a simple reason that they
are the end aspect of running a business. In other words it can said to be those capital
which are retained by the company out of profit.
External sources:
 Loan: It is a kind of borrowing capital, that are particularly taken from bank for fixed
duration of time. It is most common method of financing investment for travel and
tourism business.
 Leasing: A company which finances a certain part or all of investment of tourism
projects. Under this a contract is being sign between a leasing company which supplies
equipment at a certain price (Swift and Nitins, 2011).
 Government grant: It is a kind of government assistance that is provided to those
sectors which are available in the form of various schemes and polices to expand their
business operations.
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3.2 Develop business plan for success of travel and tourism context
The market analysis of travels and tourism business plan comes after the product and
services sections and that should be provide a detailed overview of the industry. The product and
service are based on statistics and support various claims. In common manner market analysis
should include various information about travel and tourism industry. It is based on various
target market, competitor that are places for your own product development and service offered
to customer. There are various steps that has to be followed while preparing a business plan.
 Industry description and outlooks: It Includes detail about industry with their address
and its size, growth rate and recent outlooks.
 Target market: Under this step a person need to analysed its target audiences that are
going to use the services of ravel company. It is based on demographic situation of a
particular group that include age, income, gender and lifestyle of a person.
 Market test results: It is a part of results that are conducted at initial stage of the
program (Sigala, 2017). It will help to improvise various testing process and support
statistics.
 Competitive analysis: It contains various strength and weakness of the other competitors
that are related with the establishment of effective plan.
 Business analysis: It is a kind of practice of changes in an organisation prospective that
define various needs and suggestions related to deliver value to its stakeholders. It
includes various aspect of business that are related with performance of travel and
tourism sectors.
 Cash flow analysis: Any plan without cash flow is not examine company cash inflows
and outflow that are going to done from various activities of business like investment in
operating, investing and financing activity. It is done to control cash from going outside
the business (Mattimoe, 2013).
3.3 Business plan for travel and tourism start up project
In order to succeed in planning a new start up it is very important that effective
organisation planning is done in advance so that the desired objectives can be achieved. Given
below is an example of how planning can be done to start a new project in the travel and tourism
industry:
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Executive summary – With an increase in the demand for tourism grater profit margins can be
earned through investing in this sector. The location for setting up needs to be chosen carefully
so that the best place is selected where competition is minimum.
 Companies objectives for next two years
 Sales need to be increased every year by at least 15%
 Good market should be covered through using online facilities
Customers should be provided with effective service at local national and internation
level to achieve the above goals company needs to take various efforts. It has to do proper
segmentation of whole environment so that it can do effective targeting which is very important
to give the required services to different customers. Strategies need to be formulated to take the
various decisions regarding the allocation of total resources into various activities as this will
have so much effect on the total rate of returns.
As the travel agency faces very much competition in the market it becomes vital for the
leaders to plan their polices so that they can give a tough challenge to other in the same field.
Research and development team should also work in a manner that it gives quality suggestion to
the cited companies developers as on the basis of same they will be utilising the opportunities for
their growth and expansion (Mahroum, 2016).
M3: Appropriate approaches to develop business plan
There are various approaches for developing a business plan. The first approaches is to be
thoroughly preparation of blue print of a plan before implementing it into a real world. It can be
though presentation to its investors those are going to invest capital in business. The second
approaches are writing a executive summary about the overall details of plan. And last proper
evaluation of plan through applying various methods and techniques.
D3: Critical evaluation of success of proposed business project
According to Mahroum and Scott, (2014) a successful business plan consist of various
ideas and innovation that are included by the person. From the above mentioned business plan
proper evaluation of plan and polices that are affecting the business are to be analysed. Most of
the business plan are failed because of improper decision making. So before making any new
changes review are to be taken from various responded so that chance of mistakes can be
eliminated.
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CONCLUSION
From the above mentioned project report it has been concluded that skill are required to
design proper travel and tourism industry. For the success of it various methods can be used to
manage their resources of the business. It consist of a business plan regarding travel and tourism
sectors. The report consist of a successful entrepreneur that are create its image in travel and
tourism industry. All the evaluation has been done to know about the impact of tourism sectors
in customers as well as individual.
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REFERENCES
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Swan Start-ups(pp. 103-117). Palgrave Macmillan UK.
Mattimoe, R.B., 2013. Financial management skills in small tourism businesses: an exploratory
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industry.Current Issues in Tourism.20(4). pp.346-355.
Swift, A.G. and Nitins, T., 2011. Building engaged, sustainable online communities: a case study
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Tangeland, T., Vennesland, B. and Nybakk, E., 2013. Second-home owners' intention to
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Online
The World Travel & Tourism Council.2017. [Online]. Available through:
<https://www.wttc.org/>. [Accessed on 6th July 2017].
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