Identifying Solutions for Tourism Companies to Ease the Pressure of Inflation

Research Project

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Quantitative research on inflation................................................................................................2
Qualitative research on Inflation .................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7
APPENDIX......................................................................................................................................8
Gantt Chart...................................................................................................................................8

INTRODUCTION
In a market economy prices of goods and services can always change because market forces
keep changing which fluctuate the prices of commodities in the market. Inflation occur when
these prices rise gradually. In simpler words we can say that inflation reduces the value of
countries currency over time. Inflation can occur when there is imbalance between demand and
supply of money or increase in tax rates on products and services. When a country face inflation
the price of commodities rise and value of currency reduces in that country. A unit of currency
buy less goods or services after inflation which has its worst impact on consumers. Inflation
make it harder for common people to afford their basis needs for life. In such situation people
ask for increment in their pay scale. That's why government do their efforts to keep inflaton
under control. However a moderate rise in the inflation is considered as a good economy. A rise
of 2 to 3 percent can benefit countries economy. Different events can trigger inflation in an
economy but typically there are two factors an increase in production and an increase in demand
of products and services (Law and Soon, 2020). Economist divided inflation in two main types,
cost pull inflation and demand pull inflation. Cost pull inflation happen when the cost of the
commodities increase due to different reason like increase in production cost. This leaves the
demand unchanged but the supply of goods decreases due to higher prices. Demand pull inflation
occur due to the strong demand of products and services. When there is a wide increase of
demand in an economy the prices increase automatically. A short term increase of a demand is
not the concern but a long increase in demand can impact the economy and raise the cost of
products which causes inflation (Duca-Radu, Kenny and Reuter, 2021). This report will include a
research on impact that inflation can have on tourism industry. The report will provide the
solution that tourism industry can use to reduce the negative effect of inflation. Aims and
objectives of the research are mentioned below -
Aims
 To understand inflation and processes which related to inflation and how it impact on the
tourism industry.
 To identify solutions for tourism industry which can help them to reduce adverse effects
of inflation.
Objectives
 To analyse the negative impact of inflation on tourism industry in recent years.
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