Travel and Tourism Entrepreneur

This project examines the skills, characteristics, and strategies required for success in the travel and tourism industry. It analyzes the development of a successful entrepreneurial enterprise, Virgin Group, and examines the factors that contributed to its success. The project also includes a detailed business start-up plan for a new travel firm, Darby Travels, outlining its offerings, strategic goals, market research, and customer targeting strategies.

TRAVEL AND TOURISM
ENTREPRENEUR
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1. Skills needed for successful entrepreneurship.................................................................3
1.2. Self Appraisal to identify strengths and weaknesses and strategies to become a successful
entrepreneur............................................................................................................................4
TASK 2............................................................................................................................................6
2.1. Analysis of the development of an entrepreneurial enterprise........................................6
2.2. Evaluation of factors that led to success of an enterprise................................................7
TASK 3............................................................................................................................................8
3.1. Evaluation of sources of finance and support available to enterprises in travel and tourism
................................................................................................................................................8
3.2. Development and justification of potential for success of a concept for an enterprise in
travel and tourism...................................................................................................................9
3.3. Persuasive Business Start-up Plan.................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Entrepreneur is referred to a person who creates, develops and manages a business
undertaking all the risks to achieve profit. There are various entrepreneurs all over the world an
in each industry such as Travel and tourism industry. It is one of the fastest growing industries
due to global economy impact (Evans, Stonehouse and Campbell, 2012). There are many
external pointers that affect the functioning of this sector such as political, economical, social,
technological and so forth. However, the perception of the functioning of this industry is very
positive, which is a major contributor to its success. The following assignment is based on a brief
understanding of skills and characteristics required by a travel and tourism entrepreneur. It also
covers development of enterprises in this sector as well as preparation of a business start-up plan
for niche market within travel and tourism.
TASK 1
1.1. Skills needed for successful entrepreneurship
Being an entrepreneur is one of the toughest activities in a business context. This is
because an entrepreneur needs to overcome their shortcomings, address the needs of the business
as well as face countless risks in order to drive an organization towards success. During their
time as an entrepreneur, there are various risks required by them to be possessed which rightfully
help them in achieving their long-term and short-term business objectives. These skills are
briefly discussed below:
 Discipline: One of the most important aspects of being an entrepreneur is discipline. It
requires entrepreneurs to be systematic in every task and encourages practices where
appropriate and timely accomplishments of activities are strictly required (Frohlick,
2012). Moreover, it is necessary in Travel and Tourism sector that entrepreneurs present
their services in a disciplined manner as the whole business is dependent upon this factor.
 Innovation: Since there is high competition in Travel and Tourism sector, it is prominent
that the entrepreneurs in this sector be innovative in ways which attract more customers
to acquire the services provided by them. With countless technological advancements
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happening almost every day, entrepreneurs must have this skill in order to enhance the
experience they give to their customers.
 Problem Solving: Another major skill which differentiates between an effective and
ineffective entrepreneur is their problem solving skills. Travel and Tourism sector is
subjected to problems daily. The businesses operating in this sector are quire habitual in
facing countless problems related to employees, management, customers, suppliers and
so forth. Creative problem solving skills would allow them to effectively address each
problem and ensure a smooth running of their business operations (Biggs, Hall and
Stoeckl, 2012).
 Effective Management: This is one of the most necessary skills that is required in an
entrepreneur of Travel and Tourism industry. Entrepreneurs are required to manage each
resource in a way that it is fully utilized up to its maximum potential. Effective
communication allows them to manage these resources which strengthen the organization
from within. Effective management attracts more customers and enhances the goodwill of
the firm in the market.
 Effective Communication: The whole business in Travel and Tourism sector is based on
this skill. It is of vital importance that entrepreneur in this sector possesses effective
communication skill to address the need of each customer as well as employee
effectively. It would help the entrepreneur in understanding customer demands accurately
so that it could be fulfilled in an appropriate and timely manner.
1.2. Self Appraisal to identify strengths and weaknesses and strategies to become a successful
entrepreneur
To be a successful entrepreneur, it is very important that one continuously evaluate their
own skills which could help them enhance in their career and overcome their weaknesses.
Critical evaluation of skills is necessary for any individual who is or wishes to be an entrepreneur
in Travel and Tourism industry. I wish to be an entrepreneur in this sector and below is my self-
appraisal which determines my strengths and weaknesses when it comes to possessing necessary
skills for this industry (Page, 2014).
STRENGTHS: Out of all the skills I possess, my strengths as an entrepreneur are as
follows:
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 Effective Communication: One of my biggest strengths is effective communication. I
tend to communicate effectively with all my employees and understand their problems
clearly which helps me to solve them effectively and retain skilled talent. As long as
customers are concerned, I keen to learn various languages which could help me attract
more customers of various nationalities and enhance their customer service. For this skill,
I would rate myself 9 out of 10.
 Time Management: I always aim at managing my activities and prioritizing them on the
basis of necessity. I attend issues first that are very important to be handled which allows
me to accomplish each objective in a timely manner. My emphasis while performing my
tasks is on dividing the activities an allotting them certain time which allows me to
complete these tasks with utmost effectiveness. Regarding time management, I would
give myself 7.5.
WEAKNESSES:
There are certain skills which require me to put more efforts. These skills are yet to be
furnished and are necessary to ensure my long term success. These skills are mentioned below:
 Problem Solving: This is one of my weakest skills. I usually panic while I face a major
problem. Whenever I encounter a situation that is unfavorable, instead of creatively
solving the issue, I impose the situation on others which reduces my efficiency further. I
would rate myself 5 for problem solving.
 Innovation: I lack creativity and this limitation hampers my way to achieve a given task
in a more effective manner. My pattern of working is quite similar and I don’t bother to
adopt new alternatives which might be effective and more productive. I would give
myself 6 out of 10 for innovation skills.
SKILL PROFICIENCY (OUT OF 10) EVIDENCE
Effective Communication
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Regular participation in debates
an extempore. Enthusiasm for
learning new languages. This
skill has been judged by my
peers,
Time Management 7.5 My professors undertake judging
of this skill. Through proper
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prioritization of activities as well
as reading various journals I
expect to enhance this skill even
further.
Problem Solving
5
My superiors judge this skill of
mine and I plan to enhance this
by taking up more challenging
tasks and undergoing various
training programmes regarding
problem solving.
Innovation
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Again, my professors take charge
of judging my innovative
capabilities. For enhancement, I
would adopt new methods of
working and would read journals
which could help me enhance my
creativity.
With the above analysis, I plan to enhance my skills as an entrepreneur by adopting
various methods mentioned above like journals and undergoing training sessions which could
help me sustain the tough competition in the industry. This development would also allow me to
hire and retain best talents and effectively manage the operations of the firm which further
enables me to achieve my business objectives (Hannam, Butler and Paris, 2014).
TASK 2
2.1. Analysis of the development of an entrepreneurial enterprise
It is crucial that various methods and strategies be adopted to drive an organization
towards success. In Travel and Tourism sector, it is imperative that developed strategies ensure
long term sustainability of the firm as well as enhance the effectiveness of its entrepreneur
(Horner and Swarbrooke, 2016). One of the most successful Travel and Tourism industry
entrepreneurs that the world has ever known is Richard Branson. He is the owner of Virgin
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Group which is one of the most successful enterprises of the industry. The development strategy
of Richard Branson while developing Virgin Group is described below:
 Competitiveness: Richard Branson is always known to be competitive in nature. The man
likes to take on challenges with efforts to overcome any situation that cause a hurdle in
his pathway to success. This ability served well for Virgin Group after the launch of
Virgin Atlantic with an aim to serve the underserved market segment. To drive off
competition Virgin Atlantic offered cheaper fares to customers and enhanced services.
Furthermore, his another venture by the name of Virgin Cola is still admired by big
entrepreneurs for his strength to stand against a company like Coca Cola despite of being
unsuccessful (Page and Hall, 2014).
 Knowledge: Richard Branson aims at enhancing his knowledge and hire people with the
same zeal to keep increasing their concepts about various aspects of the business. This
knowledge was the reason of him being able to launch more than 300 companies and
brands all over the world. He motivates his employees to enhance their knowledge and
ensure that they work with best resources that aid in serving the purpose.
 Risk Taking: This trait has always worked in the favor of Sir Richard Branson. He aims
at developing new spectrums for his company to achieve greater heights. He keeps on
channelizing his efforts towards achieving his vision of making his company one of the
most successful ventures in the world. This strategy has caused him to develop his
company by launching Virgin Galactic which could enable commercial passenger to
travel in space. Though highly risky, might be the biggest development in the history of
Virgin Group.
2.2. Evaluation of factors that led to success of an enterprise
Virgin Group is one of the most renowned enterprises of the world. It operates in almost
every country and has multiple diversified products to satisfy distinctive demands of its
customers (Ramukumba, and et. al., 2012). Major operations of Virgin Group associated with
Hotels and Airlines. Both of these aspects are considered as an example for new entrepreneurs
who wish to enter Travel and Tourism industry. There are various factors that are major
contributors to the firm’s success in the market. These factors are briefly described below:
 Promotional Strategy: The most effective strategy that is one of the most contributing
factors for virgin group is its promotional strategies. The firm uses all the possible
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methods of media to promote its products and services to the customers. These methods
include print and television media, radio, social media, online promotions and so forth.
All these methods aim at grabbing most attention of its customers all over the world
(Phelan and Sharpley, 2012).
 Effective Marketing: The marketing efforts of the company emphasize on the strategies
that help them eradicate their competition. It includes their prices, luxurious service as
well as priority to the safety of the customers. All these aspects influence customers to
choose the company over other existing competitors in the market. Moreover, the
marketing of the firm is channelized in a way which ensures conversion of potential
customers into loyal consumers of the firm’s products and services.
 Diversification: Virgin Group has his hands in almost every sector of the business
environment. Be it telecommunication, aviation, tourism or hospitality, each sector is
occupied by the company. However in tourism, the factor which let to its success is that it
has established long term relations with other Travel and Tourism sector companies
which enable the firm to attract more customers by providing them more services like
accommodation along with their tickets.
 Technological Inclination: The form has a vast online market as well. It is inclining
more towards using advanced technological methods to further increase the satisfaction
level of its employees. The firm has android and IOS applications which help customers
to book their tickets in advance and acquire various offers and discounts that the firm has
to offer (Komppula and Gartner, 2013).
TASK 3
3.1. Evaluation of sources of finance and support available to enterprises in travel and tourism
It is imperative for a new business start-up to acquire necessary funds to establish and run
the newly developed enterprise. After development of a enhanced and well serving business
ideas, entrepreneurs must concern the sources which could provide finance as well as support to
the company for its market penetration and long term sustainability. Some of these sources are
described below:
 Personal Investment: The first and foremost step for an entrepreneur before searching up
external options must be to gather funds from their own accords. This means that
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entrepreneurs must invest themselves in the business which would give them a clear idea
about what additional amount is required to run its operations.
 Bank Loans: If the business idea is good, then entrepreneur must present the start-up
plan to the banks or financial institutions. It would be even easier if they present their
idea in such a way that it has benefits for the parties providing fund. This is one of the
safest and the most appropriate method of generating funds (Lew, 2014).
 Crowdfunding: Another important type of source for gathering funds is crowdfunding. It
refers to acquiring financial support from the people. This method of fund acquisition is
currently high in trend and is adopted by entrepreneurs in the service or social care
industry. Whilst in Travel and Tourism industry, these funds can be effectively gathered
by using social media as a platform and describing the services the firm would be
offering to the public.
 Government: One of the toughest sources, government agencies provides financial
supports in the form of subsidies and grants. There is certain criterion which needs to be
accomplished before acquiring funds from the government. This requires the
entrepreneur to fill certain applications, providing a detailed business plan with expected
benefits and total expected cost, thorough details about experience in the field and so
forth. If the agencies find the project to be fruitful, they would provide funds to the
entrepreneur (Spenceley, 2012).
3.2. Development and justification of potential for success of a concept for an enterprise in travel
and tourism
For ensuring long term success, it is prominent that entrepreneurs develop a detailed
business plan that is targeted at both at customer satisfaction as well as profit maximization. It is
crucial that the business plan be made after a thorough assessment of the idea, the market as well
as management of financial resources. As per the scenario, a new start-up plan that could satisfy
demands of customers effectively in the current business environment is “Darby Travels”. This
new travel firm would be providing additional services with its tourism packages such as
takeaway hotels that could be delivered to the location of the tourists, as well as AI restaurant
applications that would further ease the purpose of booking the food in advance. It also would
provide credit cards that would be eco-friendly to enhance its Corporate Social Responsibilities,
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as well as decrease the flow of cash. However, there are various aspects that are required to be
considered which are as follows:
 Market Assessment: This aspect requires the entrepreneur to briefly assess the market
which could help them in determining the needs of the customers as well as potential
trends that could differentiate their services from existing companies. Entrepreneur could
use various methods that could help them in assessing the market (Smith, 2014). These
are as follows:
o Surveys: This could enable the entrepreneur in determining the requirements as
well as expectations from the businesses of Travel and Tourism industry that
would help in developing innovative strategies.
o Focus Groups: This requires the entrepreneur to discuss a certain topic regarding
the business to various groups whose response would determine the most apt
measure the start-up firm could take for success.
o Field Trials: Entrepreneur could apply one or few of their prominent business
strategy as a test to determine customer reaction before launching the same on a
higher scale.
 Business Analysis: The potential for success of Darby Travels could be analyzed even
further by conducting a business analysis that could serve the purpose well.
o Strengths: The strengths of Darby Travels is that it is providing services that
would both be favorable to the customers as well as the environment. This would
further increase its success rate in the market.
o Weaknesses: One of the major weaknesses of the firm is that it is difficult to
inculcate so many services with limited budget. Furthermore, the firm would be
new in the market. People tend to take lesser risks when it comes to travelling.
o Opportunities: The services provided by the firm are according to the needs of
the marketplace and current environmental concern that would increase its
popularity among the people.
o Threats: With presence of existing competitors like Audley Travels and Thomas
Cook, firm needs to identify more innovative methods to penetrate the UK market
(Hallak, Brown and Lindsay, 2012).
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 Cash-flow Analysis: This analysis would determine the usage of financial resources
present with the firm.
CASH FLOW STATEMENT OF DARBY TRAVELS (€)
PARTICULARS JANUARY FEBRUARY MARCH
CASH INFLOWS
INVESTMENT 160,000 - -
CREDIT SALES 40,000 90,000 135,000
TOTAL INFLOWS 200,000 90,000 135,000
CASH OUTFLOWS
MATERIALS 5,000 4,000 4,200
LABOUR 1,440 1,000 1,800
MARKETING 3,220 3,500 3,400
ACCOUNTING AND
LEGAL
7,500 10,000 10,000
SALARIES 9,000 10,000 11,000
EQUIPMENT 10,000 9,500 11,500
MISCELLANEOUS 4,840 3,500 4,500
TOTAL OUTFLOWS 41,000 41,500 46,400
NET CASH FLOW 159,000 48,500 88,600
OPENING
BALANCE
- 159,000 207,500
CLOSING
BALANCE
159,000 207,500 296,100
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3.3. Persuasive Business Start-up Plan
A persuasive start-up plan is the one which clearly accumulates the operations, methods
as well as benefits of the enterprise provided to the customers. The start-up plan of Darby
Travels is as follows:
 Organizational Overview: Darby Travels is a newly formed Travel and Tourism
Company which aims at providing enhanced and innovative services to its customers in
the UK which would enhance their travel experiences.
 Company Offerings: The firm would offer products like eco-friendly credit cards, VR
tourism glasses, electronic guide watches for travelers to find their way to desired
locations safety tabs to denote nearby police stations in case of unethical activities. The
services provided by the firm would be takeaway hotels, flexible booking options and AI
restaurant applications.
 Strategic Goals: The SMART objectives of the firm undertake 3.2% increase in Darby
Travels profit margin within 400 days of its establishment in the UK market.
 Market Research: Various methods of market research has been used by Darby Travels
to effectively denote customers’ demands regarding the type and quality of services
expected from the firm (Komppula, 2014).
 Customer Targeting: To target its potential customers in the UK the firm would use
segmentation as an effective tool to determine its potential customers in the UK market.
o Segmentation: Darby Travels, in order to maximize their sales volume in the UK,
would divide the market into segments such as, geographical, demographical and
behavioral.
o Targeting: Since the firm would provide premium services to its customers, out
of the above segments, Darby Travels would target customers of urban localities
of the UK, who would be more than 16 years of age and less than 65. Moreover,
the firm would target moderate to high income groups to effectively sell its
service at a favorable price. The customers targeted would be those who are loyal
to travelling and seek new methods to enhance their experiences.
o Positioning: Darby Travels would position itself in both online and offline
customer outlets to attract customers in the nation easily. Furthermore, the firm
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would adopt extensive marketing and promotional methods to penetrate deeper in
the market at sideline existing competitors.
CONCLUSION
Thus, it is concluded by the report that to be a successful Travel and Tourism
entrepreneur, it is necessary to possess certain skills and one must regularly evaluate these skills
in order to enhance their effectiveness. Certain development strategies are necessary to be
implemented in order to drive firms of travel and tourism sector towards success. Lastly, a well
versed business start-up plan must be developed to establish the enterprise successfully in the
market and ensure long-term sustainability.
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