Factors Influencing Travel and Tourism Industry

This assignment focuses on the various factors that influence the travel and tourism industry. It requires analyzing the importance of business planning, marketing analysis, destination competitiveness, and other related aspects. The assignment also involves referencing top journals and books in the field to provide a comprehensive understanding of the topic.

Travel
and Tourism
Entrepreneur

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
A) Entrepreneurial traits and skills required to be a successful travel and tourism entrepreneur
.....................................................................................................................................................3
B) A self-appraisal format to identify strength and weakness of an entrepreneur within travel
industry........................................................................................................................................4
TASK 2............................................................................................................................................6
A) Select a successful travel & tourism entrepreneur and analyse his or her business
development strategy..................................................................................................................6
B) Entrepreneurial process by evaluating the factors that could have led to the success of
entrepreneur’s business organisation..........................................................................................7
TASK 3............................................................................................................................................8
A) Sources of Finance.................................................................................................................8
B) & C) Develop and present business plan, business analysis and cash-flow analysis............9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship refers to a process of commencing and identifying a new business
venture. It involves a variety of functions like organising and sourcing resources required for
launching a business. In this regard, individuals who organise a business are known as
entrepreneurs (Boniface, Cooper and Cooper, 2016). They have the abilities to lead entire
operations for running a business more appropriately. The present assignment focuses on skills
that an entrepreneur needs to operate a business within travel and tourism industry. For this
purpose, a discussion on biographies of some successful entrepreneurs is made in order to
entrepreneurial development. Furthermore, business start-up plan is also developed for niche
market within given industry to understand the market potential.
TASK 1
A) Entrepreneurial traits and skills required to be a successful travel and tourism entrepreneur
Travel and tourism industry is considered as one of the most growing sector in today's
world. It mainly focuses on providing the best hospitality services to both international and
domestic tourists. Due to intense competition in given industry, entrepreneurs who seek to
operate business within same field successfully, need to possess a number of skills in order to
compete with others. It includes self-confidence, self-motivation, work-ethics and strong
determination and more. Importance of these skills can be analysed in following manner:-
Skills Importance to become successful entrepreneur
Willing to take risk Since risk is considered as the most integral part of a business.
Therefore, to face challenges and take opportunity to create
innovation in travel business, entrepreneurs must develop
willingness to take risks.
Optimistic As various circumstances arise within travel industry that impact on
business activities (Moutinho and Vargas-Sanchez, 2018). So, in
this regard think positively and handle each situation calmly will aid
entrepreneur to boost morale of other associated persons and gain
their efforts in achievement of business goals and objectives.
Competitive spirit Being an entrepreneur, individuals must have capabilities to develop

competency in business. This would enable them to stay
competitive and gain high profitability as well.
Strong determination In order to face high competition in travel industry, entrepreneurs
must develop strong determination in them. Any failure in business
operations would let down their morale and motivate them to come
up with strong innovative mind.
Business ethics To run business efficiently, entrepreneur must possess knowledge
about ethics (Vellas, 2016). This would aid making positive image
of corporation within travel industry.
Managerial skills For planning, organising and operating business within travel sector
successfully, entrepreneurs also develop effective managerial skills.
This would enable in drafting a good business strategy and
developing a realistic vision as well to achieve goals successfully.
B) A self-appraisal format to identify strength and weakness of an entrepreneur within travel
industry
As to become a successful entrepreneur in travel and tourism business, a person needs to
possess a number of skills and traits (Becker, 2016). Therefore, in this regard, to measure skills
of mine and determine how much I able to run a new business in given industry, I have
conducted an skill audit in following manner:-
Personal Skill Audit
Skills
Rating scale
Very skilled
(8 to 10)
Moderately
Skilled (5 to 7)
In need of
training (1 to
4)
Willing to take risk ✔
Evidence: According to me I have strong risk taking skills because I am ready to take decision
which is beneficial for company even if it is risky. This will help them in growing my
company's business in proper manner. Along with this it will help in attaining goal and

objective successfully and effectively.
Optimistic ✔
Evidence: I have high optimistic skill which help me in adopting change and develop decision
according in calm manner. By this skill I also able to motivate and encourage my subordinates
for conducting work effectively in each and every situation in order to attain goal as well as
objective. But according to me I need to improve my respective skills because in some situation
in also get panic and take time in adopting changed situation or factor.
Competitive Spirit ✔
Evidence: It is one of the most essential skills if an individual want to grow itself because this
skills will encourage them to adopt each and every situation in order to grab opportunities in
proper way. According to me I have high competitive skills because I adapt each and every
situation and try to accomplish task or project appropriately which help me in achieving goal as
well as objective successfully and attaining competitive advancement.
Strong determination ✔
Evidence: This skill help an individual in conducting its work appropriately as well as also help
or encourage them to adopt new and innovative technique so that they can grow its business and
customers base. According to me I have strong determination skills because I try to adopt new
and innovative things so that every one conduct their work properly which will leads to
enhancement in productivity as well as profitability ratio.
Business ethics ✔
Evidence:For running a business in smooth manner it is necessary to develop as well as adopt
proper business ethics according to function. This will help employer and employees in
conducting their business operations appropriately according to rules and regulations. But after
analysing my self I understand I need to improve my business ethic skills by taking proper
training and development session. This is so because due to low ethics I am not able to take
decision and prepare policies on ethical basis.
Managerial skills ✔
Evidence: It is one of the essential skills which is required in order to run as well as manage

business operations and functions in effective way. This is essential because by it manager or
leader able to conduct various things which is necessary such as planning, organization,
monitoring and so on. By analysis self I understand that I need to improve my managerial skills
because in some complicated situation I am not able to handle my team in proper and effective
way that directly impact on their productivity and profitability of organization.
TASK 2
A) Select a successful travel & tourism entrepreneur and analyse his or her business development
strategy
Successful entrepreneur of Travel and tourism at United Kingdom:-
In United Kingdom there are various entrepreneurs who are running its business in travel
and tourism industry. The respective industry is very much beneficial for an entrepreneur
because in this an individual may earn high profit as well as market shares (Khan and et.
al.2017). Along with this every entrepreneur have its own business development strategy which
help them in conducting their work properly that leads to attainment of goal and objective. Such
as Roy Thomson who is founder of TUI which is established in 1965 and its headquarter is in
Luton, England, United Kingdom. He established its business in hospitality industry where he
offer variety of products and services such as charter and scheduled traveller airlines, package
vacation, ocean trip lines, hotels and resorts. Along with this respective company owner also able
to grow its business at world wide level.
Business development strategy of successful entrepreneur:-
Business development strategy is essential to develop by its owner because through it
they able to conduct its business activities as well as functions in more innovative manner. Along
with this it is helpful in developing decision according to situation as well as condition (Wang,
Xiang and Fesenmaier, 2016). Business development strategy which is developed by Roy
Thomson in order to develop or establish TUI company which is operating business activities in
order to fulfil need and requirement of respective company. Some major business development
strategy which are adopted by Roy Thomson for TUI are given below:-

 He hire or recruit appropriately employees which help them in attaining goal and
objective. For this he also develop training and development programme so that they staff
will conduct their task appropriately.
 Roy Thomson also develop business strategy i.e. they conduct analysis of market on
regular basis which help them in identifying right opportunities that leads to enhancement
of business.
 Along with this they also conduct evaluation for targeting right audiences according to
their offering. Such as after analysis Roy Thomson decide to focus on travel of all type
as well as they also develop their services and its package accordingly.
 Roy Thomson main strategy for business development is that they are offering quality
products and services to their customers so that they attract form them and want to visit
their on regular basis.
B) Entrepreneurial process by evaluating the factors that could have led to the success of
entrepreneur’s business organisation
An entrepreneur can adopt various factors that help in development of business
successfully. This will also generate several opportunities for a company that they can expand its
business and market shares in effective way. In this respect there are various skills and treat of
entrepreneur which help them in attaining growth of their business (Abubakar and Ilkan, 2016).
Along with this it will also help in developing and creating brand image and name in potential
market place. Some major of them which can be adopted by an entrepreneur in order to expand
its business effectively are explain below:-
 Knowledge and creativity of entrepreneur:- A successful entrepreneur must required
specific knowledge so that they can understand all issues of business that help in
designing decision related to policies, rules, process and so on. Their knowledge also
enhance potential energy of business which increase business market share as well as
profitability ratio. Along with this creativity of an entrepreneur is also necessary because
through this they able to come up with new and innovative ideas that leads to
enhancement of business by attracting more and more customers.
 Patience of entrepreneur:- It is essential for a business entrepreneur to be patience so
that they can deal in each as and every situation in effective manner. If an entrepreneur is
patience then he/ she will able to handle its team, customers, clients and shareholders in

effective manner which leads to enhancement of business in effective ways (Ali, Ryu and
Hussain, 2016). Along with this it will also help in handling staffs in effective ways so
that they understand task and conduct it appropriately and effectively.
 Risk taking:- It is essential for an entrepreneur to be a risk taker because this will
encourage them in adopting new idea effectively which lead to attainment of goal as well
as succession of business. Along with this it will also help them in facing every situation
and dealing it in properly which leads to grab of opportunities. If an entrepreneur is a risk
taker they also encourage their staffs to adopt changes. Moreover this will also leads to
competitive advancement for a company at a marketplace which grow its market value
and shares.
TASK 3
A) Sources of Finance
Finance is essential portion of establishing a business effectively because by it an
individual able to conduct its operation functions properly with proper resources. There are
various sources which are available at a market which provide funding to business or ventures so
that they established it in effective ways. Some major of them are explain below:-
 Investment funding:- This is type of collective investment scheme under which all fund
participants invest money together. An investment fund is supply of capital belonging to
numerous investors used to collectively purchase securities (Knežević and et. al., 2016).
Each investor retains ownership or control of owned shares. TUI can get fund investment
from many sources. There are some different route describe below that can help Thomas
cook in raising funds.
 Bank Loans:- Bank loans are very common funding method used by business for
investment. There are various type of loans available in banks. Respective company can
also generate funds by borrowing it from bank. Money from loan can help in expanding
business operation and services. Bank loans are very flexible and cost effective, so it can
help TUI in tax benefits and retaining profits. Bank loans have certain teams and
condition that needs to be fill for getting funds (Tan and et. al., 2017). But there are micro
finance providers or non banking financial corporations also that can provide fund to this
company without meeting legal requirement

 Crowdfunding:- When large number of individuals invest small amount of capital to
finance a business is refer as crowdfunding. Through different networks such as
crowdfunding website or social media brings investor and company together. TUI can
use this source of funding because it has potential to increase business by expanding pool
of investors funds. Company can prepare materials and then publish them on
crowdfunding platforms.
 Venture capital:- Respective company can approach venture capital source of funding.
This is the most suitable option for funding a costly capital source for company.
Suppliers of venture capital participant in management of company and make it more
sound management team (Gong and Tung, 2017). Venture capital can help TUI by
proving large sum of money, advice and prestige. This will leads to high growth company
and earning more profits. There are several types of venture capital such as private
venture capital partnership, industrial venture capital pool, investment banking firms.
Industrial venture capital pool would be a better option for company in order to get rapid
growth.
 Angel investment:- In this source of investment, company get fund from an affluent
individual who provide capital for business in exchange for convertible debt. Respective
company can also look for an angel investor of high net worth person who provide
financial backing to company. As compare to other debt financing angel investment is
less risky. Different types of angle investors are from wealthy individual, groups of angle
investors, family or friends who are ready to invest in company. Its is very important for
TUI to understand deal of angle investor before they invest in company.
B) & C) Develop and present business plan, business analysis and cash-flow analysis
Roam the word is a company who is developing business plan and cash flow analysis so
that they understand market and effectively established its business in United Kingdom. They
also conduct business analysis through which they know about its mission, vision, objective
resources and so on that are required in order to established respective company.
Business Plan:-
Company Name Roam the word
Business concept Respective company is going launch its business operations at

market place of United Kingdom in order to serve peoples who
love travelling. Along with this respective company also
develop according to requirement as well as budget of
customers (Tussyadiah and Pesonen, 2016). That help them in
attracting customers at huge ratio and retain them for a long
run.
Products and services Products and services which are offer by Roam the world are
scheduled traveller airlines, package vacation, ocean trip lines,
hotels and resorts, Transportation such as owning taxis, luxury
buses and boats and many more (King, Sparks and Wang,
2016). Along with this they are also offering variety of services
such as accommodation, camping facilities, catering services
and so on.
Market Potential Market potential refers to a speciality of a company which help
them in attracting more and more customers in order to fulfil
their need as well as demand. In context of respective company
their market potential is that they are also developing
customized package which is based on need, demand and
budget of customers. Due to this factor they able to attract more
and more customers that enhance their profitability as well as
growth ratio.
Business Analysis Vision: Vision statement of Roam the world is to expand its
business operation and functions at world wide level. So that
they can fulfil need and requirement of customers at effective
ways.
Mission:Mission statement of Roam the world is to provide
best travel and tourism services to their customers so that they
attract as well as retain them for a long term (Boniface, Cooper

and Cooper, 2016).
Objective: The main objective of respective company is to
expand its business in whole United Kingdom by providing
quality services in coming years.
Stakeholders: Respective company's stakeholders are their
clients, investors, customers, shareholders, partners and
suppliers.
Resource required: Resource required by Roam the world in
order to established its business are qualified and skilled
labours, capital, location, products and so on.
Rome the world also conduct its financial analysis which help them in identifying its
potential and strength on financial term (Vellas, 2016). For this respective company conduct
evaluation through cash flow that is given below:-
Cash flow analysis:-
Particulars 2019 (£ million) 2020 (£ million)
Net cash from operating
activities (A)
20.00 40
Net cash used in investing
activities (B)
(47.00) (49.35)
Net cash used in financing
activities (C)
34.10 37.51
Net increase in cash and cash
equivalents (A+B+C)
11.17 28.16
Cash and cash equivalents at
beginning of period
18.27 56.32
Cash and cash equivalents at
end of period
29.44 84.48

Net cash from operating activities (A) BY 10% every year
Net cash used in investing activities (B) by 5% every year
Net cash used in financing activities © by 10% every year
Particulars 2019 (£ million) 2020 (£ million)
Cash and cash equivalents at
end of period
29.44 84.48
CONCLUSION
From the above discussed point it can be conclude as well as evaluated that travel and
tourism industry is one of the leading industry at worldwide level. Their main aim and objective
is to satisfying needs and demands of customers which help company in attracting them at high
ratio. In respective industry customers or clients are main asset which helps a company in
enhancing their profitability ratio. Along with this for opening a new venture in respective
industry an entrepreneurs required various skills which are helpful in performing successful
2019 (£ million) 2020 (£ million) 2021 (£ million)
0
20
40
60
80
100
120
140
160
180
200
29.44
84.48
176.64
Forecsated cash flow
Series1
Cash and cash equivalents at end of period
Series3
Year
C a s h a n d cas h eq u iv a len ts

business activities. In market of entrepreneurs there are various entrepreneurs who set an
example for a successful new start-ups. This is possible they have unique as well as attractive
idea which help a company in attracting more and more customers. Moreover for establishing a
new venture an entrepreneur need various things such as business plan, marketing analysis,
business analysis, cash flow, sources of finance and many more which support business
functioning.