Entrepreneurship and Tourism Management

This document discusses the significance of entrepreneurship qualities in tourism management, citing various studies and research papers. It emphasizes the role of place identity, self-efficacy, and gender in influencing entrepreneurial performance. The assignment also touches on consumer behavior, hunting as a travel experience, and the importance of individual entrepreneurs in developing competitiveness for rural tourism destinations.

Travel and Tourism
Entrepreneur

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Discussion on the skills needed for successful entrepreneurship..........................................1
1.2 A self-appraisal that identifies strengths and weaknesses and strategies for development of
benchmark for successful entrepreneur.......................................................................................3
Task 2...............................................................................................................................................4
2.1 Understanding of development of enterprises inTravel and tourism sector.........................4
2.2 Evaluation of the factors that have led to the success of the enterprise................................6
TASK 3............................................................................................................................................7
3.1 Evaluation of sources of finance and support available to enterprises inTravel and tourism
sector...........................................................................................................................................7
3.2 Develop and justify the potential for success of an enterprise in a travel and tourism
context.........................................................................................................................................8
3.3 A persuasive business start up plan.....................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The business of Travel and Tourism can be considered as one of the booming
business in industry right now. As more and more people are involving themselves to
explore the world, they have to get help of travel industry for that. The increasing
demand of travel and tourism has made this industry a low risk business sector and the
sector that produces maximum profits. In business of tourism and travelling very low risk
factor is involved. This report is in the context of Thomas cook AG which is on the best
company in travel and tourism sector. It was founded by Thomas cook in 2002 and is
headquartered in Rochdale UK. This report brings consensus about skills that are
required in travel and tourism industry. Also the evolution of organization in travel and
tourism sector would be considered. At last a full proof business plan for recessed
market in travel and tourism industry will be made.
TASK 1
1.1 Discussion on the skills needed for successful entrepreneurship.
Operating a successful travel and tourism business requires a set of skills and
ability. Skills should be used for development and making an organisation more
effective and powerful (Williams and Shaw,2013). Being an entrepreneur is more
demanding and a tricky task. In large corporate environment such as Thomas cook AG
there are managers and department heads looking after different business divisions.
But in small or medium business these are often looked after by entrepreneurs handling
the business. A successful entrepreneur requires a certain level of proficiency and these
are :
 Passion: For making business more successful, entrepreneur should be
passionate about their work. If extra efforts are poured in business then it will
make business more successful and will also turn into profit making company.
This will make entrepreneur happy about his/her work. Travel and tourism sector
requires this skill as it will help them in making a good and passionate industry to
work in.
 Discipline: This is considered as a very essential trait as this will enable
entrepreneur to move towards the desired goals (Hallak, Assaker and Lee,
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2015). If the discipline maintained is strict then it will lead an entrepreneur closer
towards their goals. The mode of discipline is necessary for this industry to follow
as this will enable them to make a culture of discipline in this industry.
 Self confidence: Entrepreneur should believe in himself as basic cognitive
process in one's self is very crucial to bring out the changes in society. A good
entrepreneur always follows a practice of a positive approach in operations of an
organisation. The managers in Travel and tourism sector should be self confident
so that they are able to handle the situations properly and would enable them to
promote this industry in a positive way.
 Open minded: Entrepreneur should be open minded while taking any decisions
regarding growth and expansion of the business (Spenceley, 2012). This attitude
helps an entrepreneur to be sharp and so that they can observe everything
around them. With this industry would get help as new innovative ideas will come
which will lead to creation of a better tour plans for the customers.
 Innovation: This trait provides that innovative ideas should be adopted by
entrepreneur from their employee's so that it they can make their business run
more smoothly and a better way. This is needed in today's marketing world this
will help tourism industry to look at things in a broader way and how they can
improve them.
 Work ethics: it is a important skill that is required by all organisation.
Entrepreneur who comes first and leaves last from the office, leaves a positive
impact on employee's working there. This attitude will help this industry in
maintain good relation with the customer and giving them best service.
Traits that are required by an entrepreneur is the one which should motivate themselves
and because of huge competition in market the deviations should be checked regularly.
This should not affect the desire of entrepreneur and should make them motivate
themselves. Out of the above mentioned skills, if entrepreneur adopts all of the skills
then they can make their organisation more fruitful and can increase their productivity
and profitability.
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1.2 A self-appraisal that identifies strengths and weaknesses and strategies for
development of benchmark for successful entrepreneur.
The skills shown by an entrepreneur decides that how good an entrepreneur is
and how efficiently they are leading the business organisation. By conducting a self
appraisal and identifying the weakness in them. It will help the analysis: this is the step
that comes after clearing the objective of an organisation. PESTEL analysis and the
SWOT analysis helps Company in doing the market research to become successful
entrepreneur of Travel and tourism industry (Smith, 2014). All the preceding mentioned
abilities are the attributes to be a good entrepreneur. Self assessment about their
imperfections will provide them the ability to achieve the required task. By conducting an
evaluation I will provide them rating from the level of 1 to 10 so that I can know which of
the skills requires more emphasis and which doesn't. This industry requires lot of
motivation to co workers which can be given by giving them incentives on particular task
that they perform. Skills audit table is discussed below:
SKILLS Rating Evidence
Self confidence 9 As I am able to take best
decisions about the tour
package and the activities
that plan turns out to be
awesome. So I am
confident enough about my
decision that I take.
Disciplined 8 As customer doesn't get the
chance to complain about
the work I do because I
follow the discipline and a
set of plan every day.
Competitive spirit and
passion
9 As competition is increasing
in this industry it doesn't
bother me much as it
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encourages me to develop
new ideas and improve my
work.
Finance 9 Finance department is one
of the favourite part of my
skills as I am having skills to
plan best finance budget.
Good communication skills 6 As an entrepreneur the only
place that I lack is good
communication. This is an
important part in this sector
as the person who does not
have communication skill
cannot nurture in this
industry.
The strengths and weakness of entrepreneur that has been derived are:
Strengths:
 Self confidence
 Disciplined
 Competitive spirit and passion
 Finance planning
Weaknesses
 Communication skills
 Risk bearing
Task 2
2.1 Understanding of development of enterprises inTravel and tourism sector.
Thomas cook was best entrepreneur in this segment of travel and tourism. He
incorporated a company named Thomas cook and group which has lots of subsidiaries
working around the globe (Ramukumba and et. al., , 2012). He started this company in
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year 1997. Thomas cook was always enthusiastic about travelling different destinations
worldwide. Once he attended a meeting in temperance society and from there he got an
idea about making a company which will provide them exclusive tours and travel to
people. He lately organized a journey for a railway company who charged one shilling
per head and was a successful trip for that company. As he had organised the trip so he
got some percentage of commission for this. Subsequently he organised many trips for
temperance society and for the people of school and children. These trips were also
successfully done so he gained some experience and was confident. After this he
started his own business.
Skills and possessed by Thomas cook are:
 Innovative: Thomas cook had a quality to innovate new things and utilize them
with progressive ideas on all the fresh project of the enterprise. He started giving
new and luxurious offers to their clients and so that they get attracted towards
them.
 Bonding: He tried to hold good relations with the employee's and customers. It
was a constant effort that there was no difference in any of the employee's
working in an organisation. This skill helped him in doing the task more
efficiently. The employee's of an organisation found him as the good motivator
and counsellor.
 Good leader: A good leadership quality helped him in building a huge umpire
under his name. He acted as a leader who provides their employee's with the
attractive salary so that they can work for achieving Objectives as specified by an
organisation. He provided his employee's with the solution for the problem and
was always ready to help the employee's at the workplace.
 Obsession for work: This skill helped him in giving 100% for his work. He used to
think for the business only and enjoys himself in the activities while doing the
business. Whatever work he did, he took them as a challenge and enjoyed them
fully.
The strategies which are implemented by the Thomas cook are:
 Promotional strategies: Thomas cook follows the various promotional strategies
to promote its business to the vast population (Peters, and Schuckert 2014). This
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strategy could only be implemented with the help of various companies which
provide them the great offers. They should provide the customers with good
packages of tourism so that the customers get attracted.
 Marketing the facility: Thomas cook adopts the strategy that provides their
customer the knowledge about the luxurious products that they provide while
booking a trip with them. These offers give the customers the level of satisfaction
and also makes them feel privileged.
 New venture: Company follows the strategies of doing the joint venture with the
other travel companies so that they can provide customers the facility that they
wants. Company has done joint ventures with many hotels and resorts.
 Strategies for increasing the sales: By providing the customers with attractive
discounts and promotion offers or by providing them free tickets they are able to
increase the sales and turnover
2.2 Evaluation of the factors that have led to the success of the enterprise.
Nowadays people are being adventures and want to travel all around the globe.
They want to explore the world. Over the years Company has created Travel
experience modern by fulfilling the needs of the customers and their expectations
(Phelan and Sharpley, 2012). For the success of any organisation it is important for
them to create the trust among the customers by fulfilling their desires. In present
around 20 million people prefer to travel with Thomson cook every year and the figure is
increasing rapidly. The main factors that have taken Thomas cook AG to the success is
by recognising the strategy and implementing it in the workplace.
Swot analysis of Thomas cook
Strengths: The main strength of Company is to provide their customers with the full
satisfaction. It is the priority of Company. They build new innovative ideas so as to
promote the products offered by Company. The joint venture entered by Company helps
them in increasing their awareness in this industry and also helped them to increase the
list of the customers.
Weaknesses: If an organisation has a attitude of hiding the things then it may led them
shift backwards (Page and Hall, 2014). In the previous year it was noticed that Thomas
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cook used to hide their financial statements from the general public. This has impacted
the investors and the collaborators to invest more in Company.
Opportunities: As Company is doing the business in Travel and tourism sector they
can promote their business in the hotels sectors and the airlines sector so as to provide
their customer the exclusive facility of booking a pre packaged tour.
Threat: The main threat to any business organisation is the rivals that they have. The
rivals in this industry make the fear and the stress that creates the problem for an
organisation in taking the initiatives for the betterment if the business.
TASK 3
3.1 Evaluation of sources of finance and support available to enterprises inTravel and
tourism sector.
For a business to be successful it is important that financial strategies are
implemented in a proper way. The financial aspect of the business is one of the main
aspect that should be kept in mind while developing the policies for expansion. There
are various sources that helps the business to raise funds from the market (Lew, 2014).
The investments are required in developing new products and redevelopment of
strategies and innovating the new ideas so as to attract the customers. Travel and
tourism companies develops the new ideas so as to enhance their services. The
investment in the sector is generated through their old clients or the partners or the by
taking the external loans from the banks or by the capital market. The sources of
financing in Travel and tourism sector are:
 Private investors: In Travel and tourism industry there are different ways that
render the resources (Sources of Finance, 2018.). It is an entrepreneur decision
that will form the path through which they will raise the money. It is very crucial
decision of an entrepreneur through which he can raise the money. They have to
identify the correct option as if it turns to bad decision than they are accountable
for this.
 Old investors: Company should invite different investors to invest some funds in
organisation through displaying them their financial accounts so that the new
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capitalists get aware of what they will gain by investing their money in the
company.
 Ministry of tourism: Procuring funds from the ministry of tourism is the best
way, they provide the huge amount of money to Company (Komppula, 2014).
The ministry of tourism also holds the unrestricted fund that provides the support
for non-commercial tourism facilities, so as to enhance the overseas tourists.
 Money market: Funding can be obtained by Company as they can use seed
capital, venture capital, private equity, angel investor as resource to expand their
business.
External Business Loan: Business loans are also provided to Company in this
sector. It is easily given to companies who are having the large scale operations and
are providing the services in the major part of the world. Government has also imitated
a artefact of business loan giver that helps companies in getting loans.
3.2 Develop and justify the potential for success of an enterprise in a travel and tourism
context
The SWOT analysis of Company is the key to evaluate the potential of any
company. Marketing mix techniques also becomes an asset for an organisation like
travel and tourism (Komppula, 2013). Company should do the marketing analysis so as
to know Company’s strengths and weakness. Company should be able to recognise the
target market so that it knows the areas in which they are selling their service and can
get aware about the consumers behaviour and expectations. companies potential to
meet Objectives and success are based on the below points:
 Analyse the market: The primary opportunity for Thomas cook is to analyse the
market and keep the prospective to acquire the market. As Company noticed the
drastic enlargement in the customer base that they have the opportunity to
develop and implement the new product get easy. A new start with these
opportunity an give organisation to boost its business. Hence it will help the
company to boost its opportunities and to analyse the threats.
 Market Approach: This cover few points that are:
 Dividing the marketplace as per the preference, age, taste, desires etc.
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 Making a target and gaining information about the market helps the
company to better sale its products.
 Marketing mix: Company accepts this strategies to advance its product, prices,
place and promotions,
 Product: New thought should be adapted by Company so as to expand
the demand of the commodity. This becomes possible only when the
industry is properly analysed. The tickets should be booked online and
Company should also provide the facility to the existing customers of
BOGO.
 Price: The tickets should be segmented as per the requirements of the
customers. The prices should be based on the needs of the customers
(Komppula and Gartner, 2013). This also depends on the sociology
reasons which are age of the individual and their priority.
 Place: an organisation should open various offices so as to reach the
customers easily. Company should open their offices in the areas which
give them the maximum profits by reaching the majority of the customers.
This provides the customers the comfort in joining them.
 Promotion: As social network being one of the best instruments to
promote their product. Company can give the advertisement in the social
media which will help them in reaching the largest size of population at a
faster speed.
Financial flows is very important part in running any business. Growth of any
organisation is observed if the cash flows are generated in good way. Terms of
receiving payment and giving is mutually decided by customers. Continuous cash flow
is the main aim and priority of any company. If there is better cash flow then it will
enable them to move faster and quicker. Cash flow is divided into three parts which are
cash generated from operations, cash generated from investments and cash generated
from financing. Sales which are generated are counted in the cash from operations. For
any company they should plan in a way that will promote their sales and will return them
the cash flows. Investements from the investor would also encourage growth of the
company.
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3.3 A persuasive business start up plan.
A business organisation follows various approaches to become stable in this
industry. Travel and tourism industry plays an vital role in evolution of the economy. The
objective of an organisation should be clear to an entrepreneur and planning should be
done accordingly (Horner and Swarbrooke, 2016). The building of a business program
involves the market analysis, Swot analysis, competition in the market, target market
and PESTEL analysis. The following points should be considered while making an
effective business plan:
 Objectives: Objectives of the business should be clear in the mind of an
entrepreneur. As Thomas cook aim is to establish the business in travelling and
tourism sector and expand their business to the vast locality. This can be
possible by collaborating with the other companies which are engaged in the
same field. The company is confident enough that it can expand their business
and will be able to provide a better returns to their investor.
 Market analysis: this is the step that comes after clearing the objective of an
organisation. PESTEL analysis and the SWOT analysis helps Company in doing
the market research (Hallak, Brown and Lindsay, 2012. The market has been
analysed by Thomas cook in positive manner and the trend has been followed
which will lead them to achieve success in the global market. The market is
covered by both the small and the big organisation but possibility to achieve the
target is in an organisation hand.
 Strategies: Company should formulate the proper strategy so as to beat their
rivals in the market. An entrepreneur must plan how to achieve the business
objective with winning the hearts of customers. In Thomas cook they have
created a strategies that will make them achieve the market trends and the
customers demand so that they will be able to capture global market with full
customer satisfaction.
 Innovative ideas: Thomas Cook managers have the quality of innovative ideas.
He and his employees can share the ideas but try to implement that only which
are according to the strategy. The purpose is to meet the objective. New idea
which leaves the great impact on the market is facility of easy travels which is
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possible through online procedure only. Today’s world is a technological world so
instead of booking tours manually it’s convenient to book through online. This
new idea works for Thomas Cook so as to achieve the overall goals and
objectives.
 Differentiation: It plays an important role i.e. making a Thomas Cook different
from the other companies’. At the time of online booking of tickets if a customer
couldn’t pay the amount due to any reason then the company has given the
facility of “Cash made at the time of delivery”. Client pays the amount after
receiving the cheeking in at the hotels. Package booking through call centre and
facilities of accommodation in luxurious Hotel makes the Thomas cook different
from others.
CONCLUSION
An entrepreneur uses various strategies so as to be successful in an
organisation. an organisation should evaluate the strengths and weakness so as to
know how they are working in the present scenario. The aim of the successful
entrepreneur is to bring the innovativeness in the business which will make them stand
out of the competition. Having a good business plan will help an organisation to
compete in the market. In the present case an entrepreneurship qualities has helped
Company to become one of the leading travel and tourism company.
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REFERENCES
Books and authors
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel
and tourism. Taylor & Francis.
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.
Hallak, R., Brown, G. and Lindsay, N. J., 2012. The Place Identity–Performance
relationship among tourism entrepreneurs: A structural equation modelling
analysis. Tourism Management. 33(1). pp.143-154.
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
Komppula, R. and Gartner, W.C., 2013. Hunting as a travel experience: An auto-
ethnographic study of hunting tourism in Finland and the USA. Tourism
Management. 35. pp.168-180.
Komppula, R., 2013. Success and growth in rural tourism micro-businesses in Finland:
financial or life-style objectives?. In Small firms in tourism (pp. 125-148).
Routledge.
Komppula, R., 2014. The role of individual entrepreneurs in development of
competitiveness for a rural tourism destination–A case study. Tourism
Management. 40. pp.361-371.
Lew, A.A., 2014. Scale, change and resilience in community tourism planning. Tourism
Geographies. 16(1). pp.14-22.
Page, S.J. and Hall, C.M., 2014. The geography of tourism and recreation:
Environment, place and space. Routledge.
Peters, M. and Schuckert, M., 2014. Tourism entrepreneurs' perception of quality of life:
an explorative study. Tourism analysis. 19(6). pp.731-740.
Phelan, C. and Sharpley, R., 2012. Exploring entrepreneurial skills and competencies
in farm tourism. Local Economy. 27(2). pp.103-118.
Ramukumba, T., Mmbengwa, V .M., Mwamayi, K .A. and Groenewald, J .A., 2012.
Analysis of local economic development (LED) initiated partnership and support
services for emerging tourism entrepreneurs in George municipality, Western
Cape Province, RSA. Tourism Management Perspectives. 2. pp.7-12.
Smith, S.L., 2014. Tourism analysis: A handbook. Routledge.
Spenceley, A., 2012. Responsible tourism: Critical issues for conservation and
development. Routledge.
Williams, A.M. and Shaw, G., 2013. From lifestyle consumption to lifestyle production:
Changing patterns of tourism entrepreneurship. In Small firms in tourism (pp.
109-124). Routledge.
Online
Sources of Finance. 2018. [Online] Available
through<https://efinancemanagement.com/sources-of-finance>.
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