Travel and Tourism Entrepreneur

This project examines the requirements for becoming a successful travel and tourism entrepreneur, including essential skills and traits. It analyzes the business development strategy of Thomas Cook, a renowned travel entrepreneur, and develops a business plan for expanding a travel and tourism business into the Chinese market.

Travel and Tourism
Entrepreneur

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A) Requirement traits and skills to be successful travel and tourism entrepreneur....................1
B) Produce self-appraisal of entrepreneur traits and skills ........................................................3
TASK 2............................................................................................................................................5
A) Analysis business development strategy and evaluation factors of entrepreneurial
procedures of selected successful travel and tourism entrepreneur ...........................................5
TASK 3............................................................................................................................................7
A) Developing travel and tourism business plan .......................................................................7
CONCLUSION..............................................................................................................................12
REFERENCE.................................................................................................................................13

INTRODUCTION
Travel and tourism business is the service sector in the economy. It is primary reason is
to give facility to the people through offering them the services of travelling, accommodation,
sightseeing and so on. A successful enterpriser takes their workers with their own in taking every
steps ahead for the benefits of the company (Hallak, Assaker and Lee, 2015). Report will explain
the requirement of traits and skills to be successful travel and tourism entrepreneur. It will
produce self appraisal of entrepreneur traits and skills. Furthermore, study will analysis business
development strategy of successful entrepreneur and entrepreneurial process by evaluating the
factors which lead to success entrepreneur's business organization.
TASK 1
A) Requirement traits and skills to be successful travel and tourism entrepreneur
Travel and Tourism Entrepreneur:
Travel and tourism entrepreneur can be determined as person or group of individuals
producing and handling tourism products. The enterpriser must have generally prescribed
entrepreneurial traits along with services sector specialities. The tourism specialities includes
two main aims that is concerned the commercial structure of the industry and to understand of
the general company of economic power structure (Ahmad, 2015). The travel and tourism
entrepreneur is normally self-employed, self-motivated, aspiring and willing to take
opportunities to meet their objectives. Successful entrepreneurs attend to be highly skilled at
managing and motivating their workers within the travel and tourism business.
Skills of Entrepreneur:
In order to that, there are many skills and traits are required to be successful travel and
tourism entrepreneur. Such as:
Time management Skill: Time management is procedure of preparation and exercising
intended control of time spent on particular actions that is enhanced power, efficiency and
productiveness. Therefore, it is necessary to manage time for completing the different activities
of business such as managing the people, solving the problems and making decision within the
travel and tourism sector (Peters and Schuckert, 2014). It is the service sector company in which
entrepreneur needs to manage all the employees for handling travel and tourism services and
goods to satisfaction of consumers.
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Financial and market awareness: Market awareness means to ability to assess the
whole stock and option marketplace from macro level. Financial awareness refers to ability to
control the financial resources and activities appropriately within the business. Therefore,
successful entrepreneur must have ability to control and assess all financial records like market
share, profits, pricing and revenue of travel and tourism business. Also, they must have ability to
identify the factors which involve competitors, their prices, products and services of tourism with
in the marketplace.
Communication skill: Communication skills are qualities utilised when giving and
receiving various types of info and messages which involve communication thoughts and
feeling. These skills include listening, talking, observing and empathizing. Therefore, successful
entrepreneur must have effective communication skills such as verbal, interpersonal, written to
interact with the managers and employees within the travel and tourism business (Williams,
2014). Effective communication with staff and manager in relation to increase motivation and
confidence at the workplace.
Entrepreneurial skill: Numerous enterprisers believe that the most essential factor
which can determine their level of success with start-up regards to their overall experience and
abilities in niche areas. Therefore, they need to concentrate on raising different skills such as
Ambition, willingness to learn, ability to listen, creativity, confidence and risk taking. In this
context, successful travel entrepreneur must have all skills for running the business smoothly.
Leadership skill: Leader is the person who is responsible for direction on strategic
vision to their followers within the organization. Leadership is all bout the managing the people
through having the great ideas and strategic vision. Therefore, it is necessary to have leadership
skills to be successful entrepreneur in travel and tourism (Shaw, 2014). They must have different
skills which are involved in leadership abilities such as strategic vision, communication,
delegation, leading by example, asking be advice and so on. With this skill, entrepreneur needs
to manage and lead all employees within the travel and tourism business.
Traits of Entrepreneur:
There are some traits of successful travel and tourism entrepreneur such as:
Strong work ethic: It is necessary for successful entrepreneur to have strong work ethic
in which they ensure to first in office and last to leave. The successful enterprisers are those who
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always have their mind in their work even they are not in workplace. In order to that, strong
work ethic is essential trait to be successful travel and tourism enterprisers.
Creative and Innovative: The major aspect of creativity to discover relationship
between two unconnected conditions or events. For solving these issues, they come up with new
and creative thing or ideas which help to be successful enterprisers in travel and tourism
business. Creative and innovative ideas or thoughts help to solve the problems like cuber
security and data privacy, Brexit challenges and other issues. Getting the creative and innovative
thoughts for solution problem which help to be successful entrepreneur in travel and tourism
business.
B) Produce self-appraisal of entrepreneur traits and skills
For self assessment and self appraisal, it is necessary to identify the strengths and
weakness which is called as personal skill audit. It is the good way for an individual to determine
strength and requires improving in healthy environment of organization (Lew, 2014). It has been
evidenced very useful for people to keep itself on the career track primarily aspiring managers
and entrepreneurs. In this context, conduct the Swot as personal skill audit which is benchmarked
to be successful entrepreneur.
Strengths
 Great time management skill for
completed work.
 Ability to lead and manage the staff.
 Good communication skills such as
verbal, written.
 Great self confident and motivate skill.
Weaknesses
 Lack of creative and innovative skill.
 Poor knowledge of financial and
market awareness.
 Lack of entrepreneurial skills as risk
taking, listen and creativity.
Opportunities
 Working with people at the new
culture.
 Meeting new people.
 Gaining valuable transferable skills.
 High network marketing of business.
Threats
 Solving the complex issues of travel
and tourism.
 Poor ability to handle the financial
resources.
 Lack of strategic planning skill for
solving the issues of business.
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Skill Analysis
Skill analysis help to improve and develop the abilities and giving the ranking from 1 to 5
scale with confidence level. Improvement of skills and traits help to be successful entrepreneur
and achieve professional as well as personal objectives. After identify threats and weakness, it is
necessary to analysis weak skill and traits which help to solve the issues and situations of travel
and tourism business by entrepreneur.
Skills Activities Time frame Rank with confidence level (1-5)
Entrepreneurial
skill
For improving this
skill, entrepreneur
needs to take risk,
active listening and
getting the creativity
and innovative ideas
for business.
Entrepreneur
needs to improve
this skill within
the 2 weeks.
They get 3th rank with confidence
level for improving the
entrepreneurial skills.
Problem solving For improving this
skill, enterpriser
require identifying
the problems
appropriately and
discussing with
manager within the
travel and tourism
sector.
Entrepreneur
needs to improve
this skill within
the 1 week.
They get 4th rank with confidence
level for improving the
entrepreneurial skills.
Strategic planning Entrepreneur needs
to take action like
creative thinking
and decision making
for strategic
planning in travel
and tourism
They need to
develop strategic
planning skill
within 1 month.
They get 5th rank with confidence
level for improving the
entrepreneurial skills.
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business.
Financial and
accounting Skills
Enterpriser requires
following all
techniques and rules
of financial as well
as accounting for
improving financial
skills within the
travel business.
They need to
develop the
financial and
accounting skills
for solving all
issues relating to
accounting within
business.
They get 3th rank with confidence
level for improving the
entrepreneurial skills.
TASK 2
A) Analysis business development strategy and evaluation factors of entrepreneurial procedures
of selected successful travel and tourism entrepreneur
The selected entrepreneur is Thomas Cook who is founder of travel agency Thomas Cook
and Son. He was an English business person. Thomas Cook Group Plc is British international
travel organization. It was formed by merger of Thomas Cook AG, itself successor to Thomas
Cook & Son and My Travel Group Plc. In order to that, the idea to offer journey came into him
while walking from Market Harborough to city to attend meeting to the temperance society
(Daniel and et.al., 2017).
In order to that, Thomas Cook start to contemplate international trips to Europe, US and
holy Land. In order to promote his tours, he has presentation Herald and journey advisor. Cook
has taken 150000 people to London, his final trains to the presentation carrying 3000 kids from
Leicester and Derby.
Across the Channels
Thomas Cook continued to expand his business in Britain but he was identified to
develop in Europe too. Cook taken over this chance through trying to influence the organizations
commanding the Channel traffics to allow his grants. They consolidated to work with him and
only path he was able to utilise was the one among Harwich and Antwerp (Deale, 2016).
Nowadays, Thomas Cook one of the leading leisure travel groups in the worldwide with
sales £7.8 billion and 19 million consumers every year. The group is supported through around
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22000 colleagues and operates from 16 nations. The vision of Thomas Cook is to be the best-
loved holiday company, delivering inspiring and individualized holiday experiences for all its
consumers. There is one reason for longevity and continued success is their commitment to
systematically meet and exceed the prospects of their consumers. Cook described himself as the
willing and dedicated worker of travelling public.
Business Development Strategy
He was frontrunner of setting up tourism systems and made Mass Tourism possible in
Italy. He had an ultimate goal to put tourism in the services of centralizing the Italian state before
Italian merger. He meditated ways of tourism can improve the economic and political issues.
Cook believed which tourism can reinforce the mergers of Italy through physical travel from one
places to another connecting various locations of Italy. He played certain role in not only
boosting the Italian economy but also brining environment and morale of its mergers (Shaw,
2014). In this context, Thomas managed succession of trips between Leicester, Nottingham on
behalf of local moderation societies. With this, many of thousands of people experienced rail
travel for first time. He was able to secular the foundations of his future business. Later, he was
described this period as one of enthusiastic financial aid since on the far side the printing of
posters and handbills. He had no financial interest in any of these early journey. Thomas Cook
has fuelled through good strategies which have been important in making investment for
upcoming development in the travel and tourism sector in hospitality business. For that,
company utilise porter's five force analysis of competitive advantage in travel sector.
PORTER'S FIVE FORCE MODEL:
It is the strategy framework which took strategic decisions away from analysing the
present competition (Nikraftar and Hosseini, 2016). Thomas Cook can not only utilise Porter five
force to evolve strategic positions but also can explore profitable chances in all consumer
services sector. Five forces are involved such as:
Threats of new entrant:
Thomas Cook has to manage all these challenges and build effective barriers safeguard
their competitive advantage. Company handle threat of new entrants by innovating new goods
and services to fold but give old consumers and reason to purchase products of Thomas Cook.
There are high level of threat of new entrance for Thomas Cook Group Plc which directly effect
on market share and revenue in the travel and tourism sector.
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Bargaining power of suppliers:
Suppliers in dominant position can reduce the margins can earn in the market of Thomas
Cook Group Plc. Developing dedicated suppliers whose depends upon on firm. Through building
efficient supply chain with multiple suppliers for handling the bargaining power of suppliers.
There are positively effected on Thomas Cook Group Plc in relation to market share and revenue
in the travel and tourism sector
Threats of Substitute:
Thomas Cook can handle threat of substitute products and services through being
services oriented rather than product oriented within the travel and tourism. Through raising
switching cost for the consumers for managing the threats by firm (Altinay, Sigala and Waligo,
2016). This impact on market share and revenue of Thomas Cook Group Plc in travel sector.
Bargaining power of buyers:
The bargaining power of buyers is high level within the travel and tourism sector.
Company needs to build innovative products for seek discounts and offering on set goods, so that
if firm keep on coming up with fresh goods then it can limit bargaining power of buyers. There
are high level of threat of new entrance for Thomas Cook Group Plc which directly effect on
market share and revenue in the travel and tourism sector.
Rivalry between existing competitors:
The rivalry between the existing players in travel and tourism industry is aggravated then
it will drive down prices and reduce overall profits of the business. Thomas Cook group operates
in very competitive travel and tourism business (Ngandu, 2016). There are high level of threat of
new entrance for Thomas Cook Group Plc which directly effect on market share and revenue in
the travel and tourism sector.
TASK 3
A) Developing travel and tourism business plan
The Thomas Cook is expanding their business in China travel and tourism marketplace.
Therefore, they are created and developed business plan for expanding their business in the
China market.
Executive Summary
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In the business plan, it has covered the business analysis of Thomas Cook Group Plc for
expanding their business in Chinese tour marketplace. It has discussed that internal analysis as
use Swot analysis of firm. Then, it has covered that situational analysis as PESTLE analysis of
selected nation. It has discussed that different ways like joint venture which help to expand their
business by travel and tourism business.
Business Analysis
Thomas Cook Group Plc is the world's leading travel and tourism sector in the UK. The
company is formed by the merger of Thomas Cook & Son and My Travel Group Plc. The group
operates number of tour operators and airlines based in the UK, Germany and other nation. At
the time of merger, 52% of shares in the fresh firm were held through the German mail order
and division store firm Arcandor and 48% of shares owned by shareholder of My Travel Group.
The group has announced strategic view which will consider the upcoming role of the airline.
Internal Analysis (SWOT)
Strength
Thomas Cook is the leading travel company in UK and Europe which is provided
affordable and accessible holidays to people. In order to that, they want to expand their business
in Chinese travel and tourism marketplace (Shaw, 2014). Due to association with last Olympics,
they are increased brand presences worldwide that help to expand the business. There are major
competitors such as TUI, Virgin etc. that are also leaded tour and travel brand.
Weakness
There are high intense competition means limited brand presences which is big weakness
of Thomas Cook Group Plc. This weakness is highly effected on the business expansion of
business in Chinese tour marketplace.
Opportunity
Thomas Cook want to expand their business in Chinese for enhance their share prices and
digitalize the operations for better penetration. Through expansion, company is to be the largest
travel organization in the UK and Europe (Williams, 2014).
Threats
There are high level of uncertainty in the airline sector and prices wars can decrease
market share. Due to unpaid compensation, it increases in liabilities which barrier to expand their
business in the Chinese travel and tourism marketplace.
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Situational Analysis (PESTLE)
Thomas Cook expand business in Chinese tour market, so that they are doing the
situational analysis by utilising the Pestle analysis of selected country.
Political Factor-
Thomas Cook Group Plc want to expand their business in Chinese tour marketplace, so
that they effect some government regulations and policies, taxation policy of the selected market.
Economic Factor
It involves inflation rate, interest, exchange rate etc. which are highly effected on
business expansion of Thomas Cook Group Plc in the Chinese tour market (Peter and Schuckert,
2014).
Social Factor
Consumer demand, lifestyle, income level which are involved in social factor that effect
on business expansion of Thomas Cook Group Plc in the Chinese tour market.
Technological Factor
Technological advancement, digital marketing which are included in technological
factors that effect on business expansion of Thomas Cook Group Plc in the Chinese tour market
(Ahmad, 2015).
Environmental Factor
Environmental regulations, carbon footprint and emission which are included in
environmental factor. These elements are highly effected on the business expansion of Thomas
Cook Group Plc in the Chinese tour market.
Legal Factor
Labour, employment, health and safety, consumer protection which are involved in legal
factors. These factors are highly effected on the business expansion of Thomas Cook Group Plc
in the Chinese tour market.
Funding
Thomas Cook Group Plc is the British travel and tourism in the worldwide. Now, they
want to expand their business in Chinese tour market. For that, they are required funds or
finance, so that they raise the funding from joint venture in the Chinese market (Hallak, Assaker
and Lee, 2015). This way is more profitable for Thomas Cook. Company need to partner that not
only share tour operators market knowledge but also can operate long pull flight from China to
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Europe. Joint venture is the best mode of access the funds for expanding their business in the
Chinese tour marketplace.
Financial Projection
Thomas Cook needs to determine the income statement, cash flow analysis for expanding
their business in Chinese tour marketplace.
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CONCLUSION
This report has summarised that different skills and traits such as time management,
financial and market awareness, communication skill, entrepreneurial, leadership, strong work
ethic and creative and innovative which are required by travel and tourism entrepreneur. It can be
concluded that self-appraisal of entrepreneur traits and skills by utilising the SWOT analysis and
skill analysis through rating scale for improving the skills and traits to be successful
entrepreneur. It can be discussed that business development strategy of selected entrepreneur
which involves porter's five force model. Furthermore, study has completed that developing
business plan in which selected entrepreneur needs to expand business in chosen nation thus,
firm has internal analysis, situational analysis, funding and financial projection of organization.
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REFERENCE
Books and journals
Ahmad, S. Z., 2015. Entrepreneurship education in tourism and hospitality programs. Journal of
Hospitality & Tourism Education. 27(1). pp.20-29.
Altinay, L., Sigala, M. and Waligo, V., 2016. Social value creation through tourism
enterprise. Tourism Management. 54. pp.404-417.
Daniel, A. D. and et.al., 2017. Tourism Education: What about entrepreneurial skills?. Journal of
Hospitality and Tourism Management. 30. pp.65-72.
Deale, C.S., 2016. Entrepreneurship education in hospitality and tourism: insights from
entrepreneurs. Journal of Teaching in Travel & Tourism. 16(1). pp.20-39.
Hallak, R., Assaker, G. and Lee, C., 2015. Tourism entrepreneurship performance: The effects of
place identity, self-efficacy, and gender. Journal of Travel Research. 54(1). pp.36-51.
Lew, A.A., 2014. Scale, change and resilience in community tourism planning. Tourism
Geographies. 16(1). pp.14-22.
Ngandu, S., 2016. TOURISM HUMAN RESOURCE DEVELOPMENT SKILLS AUDIT
REVIEW REPORT AND STRATEGY.
Nikraftar, T. and Hosseini, E., 2016. Factors affecting entrepreneurial opportunities recognition
in tourism small and medium sized enterprises. Tourism Review. 71(1). pp.6-17.
Peters, M. and Schuckert, M., 2014. Tourism entrepreneurs' perception of quality of life: an
explorative study. Tourism analysis. 19(6). pp.731-740.
Shaw, G., 2014. Entrepreneurial cultures and small business enterprises in tourism. The Wiley
Blackwell companion to tourism, pp.120-131.
Shaw, G., 2014. Entrepreneurial cultures and small business enterprises in tourism. The Wiley
Blackwell companion to tourism, pp.120-131.
Williams, A., 2014. Tourism innovation. The Wiley Blackwell companion to tourism, pp.168-
178.
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