Travel and Tourism Entrepreneurship

The assignment provides a detailed analysis of four successful travel and tourism entrepreneurs, evaluating their business development strategies and identifying factors that contributed to their success. It also discusses the importance of entrepreneurial mindset, innovativeness, and green entrepreneurship in the context of travel and tourism. The report includes references from academic journals and books, as well as online sources, providing a comprehensive overview of the topic.

Travel and Tourism
Entrepreneur

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Entrepreneurial traits and skills of successful travel and tourism entrepreneur .........................1
SWOT analysis of an entrepreneur..............................................................................................2
TASK 2............................................................................................................................................4
Select the successful travel and tourism entrepreneur and analyse his or her business
development strategy...................................................................................................................4
Evaluating the factor that could led the success of enterprise's business organization...............6
TASK 3............................................................................................................................................6
A. Evaluation And Discussion Of Sources Of Finance Available For Proposed Project............6
B. Discussion and Justification of Market Assessment, Business Analysis And Cash Flow
Analysis........................................................................................................................................7
C. Preparation of Business Plan...................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneur is an individual who started the new business by taking risk and for the
purpose of earning profit. It plays a vital role in the growth and development of the country.
Present study will be based on the Travel and tourism entrepreneur that provides services
to the people. Tourism can be domestic or international. This sector provides services to the
people who are interested in traveling and providing them accommodation, transportation
facilities.
Report will include entrepreneurial traits and skills that are required to be a successful
travel and tourism entrepreneur. It also includes the SWOT analysis of an entrepreneur.
Furthermore, it will include the business plan that consist of target market, financial projection
and a cash flow analysis.
TASK 1
A. Entrepreneurial traits and skills of successful travel and tourism entrepreneur
Entrepreneur traits are the characteristics of an entrepreneur that are necessary to run a
business. It comprises of risk taking, confidence, delegate etc. these traits must be possessed by
the entrepreneur to become successful. Entrepreneurial skills help in defining specific goals and
attaining it.
Entrepreneurial Traits
There are several entrepreneurial traits for becoming a successful entrepreneur, which are
mentioned as below:
Creative: One of the most important trait which must be possessed by an entrepreneur is
creativity. This helps in creating a new idea and innovation in the business. An entrepreneur
must have creative mind so that it can enhance the change in the business by its creativity (Kerr,
Kerr and Xu, 2018). For travel and tourism entrepreneur creativity also plays an important role in
the industry. As the entrepreneur bringing new changes in the company helps in growth of the
company.
Risk taking: Risk is the main factor that always occurred while opening a new business.
Before starting any business an entrepreneur must take risk to invest money in it. Every
successful entrepreneur has taken risk before starting its new business. True entrepreneurs are
those who are not afraid of taking risks. Travel and tourism entrepreneur have to take risk before
starting the company. As risk occurred in every business so for travel entrepreneur it is the
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biggest risk for providing services online as most of the consumers book their package online
and then they cancel their booking so because of it sometimes entrepreneur have to suffer the
loss.
Discipline: An entrepreneur must be disciplined as they cannot make excuse in the
business for any reason of their failure. Successful entrepreneur must know the importance of
discipline in the as they don't make any excuse for failure. They know how to manage the time to
completing the task (Obschonka and Stuetzer, 2017). Travel and tourism entrepreneur have to
maintain discipline in the company. As dealing with clients it will have to show the discipline
not doing any misbehave with them.
Effective planning: Before starting the business an entrepreneur must do proper
planning. Proper budget is maintained by the finance department like where to invest the money,
from where the sources of financing is being collected etc. Proper planning is to be done so that
it will help in the future for doing business effectively and efficiently. Travel and tourism
entrepreneur have to made the planning for the future so that all the work will be done on time.
Effective planning helps travel entrepreneur to increase its sales and helps in managing the
finance of the company.
Passionate: An entrepreneur must be passionate about its business. The key to success is
lies in the work that one can loves to do so entrepreneur also like the work that it is being done
by him/her. Passion of doing business can lead to increasing the profit. Travel and tourism
entrepreneur have to be passionate about its work. An entrepreneur must have passion to
complete its work effectively.
Entrepreneurial skills
Skills that an entrepreneur must have are presented as follows:
Time management skills : This is the most important skills that must be possessed by an
entrepreneur. Managing time in the business leads to the success for an entrepreneur. Time is the
important factor that affect the working of the business. Entrepreneur have to manage the time
while doing its work in the business (DeNisi, 2015). Travel and tourism entrepreneur must have
time management skills in them so that all the work is being done on time. This helps in building
the trust of the clients for an entrepreneur.
Communication skills : A successful entrepreneur is the person who has a good
communication skill and motivate the customers to take their services. Those who have this trait
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can achieve the growth in the business otherwise it remains the constant. As travel and tourism is
the sector for providing services to the customers and without good communication skills it is
not be achieved. For travel and tourism entrepreneur communicating with the clients plays an
important role for it. For increasing the sales travel entrepreneur must have good communication
with the clients.
B. SWOT analysis of an entrepreneur
Title: Self evaluation test
Main responsibilities: Formulating policies and Managing daily
operations
Responsibilities: Managing the work on time and motivating the
employees.
Projects you lead: Related to Travel and tourism, hotel,
hospitality sector etc.
Projects you participate: Projects that are from domestic as well as
international market
Results of any projects: Good results clients are happy with the work
done
Responsibilities outside job: Clients feedback and services provided to the
customer
Goals for the coming year: Developing an online system for travel and
tourism
Goals for next 5 years: Merging with other online tour and travel
companies.
SWOT analysis
Strength
The main strength that I possess as a travel and tourism entrepreneur is my
communication skill that play an important role in building relationship with the clients. Good
communication skill helps in increasing the sales for the company and as travel entrepreneur it
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plays vital role because I have to dealing with the clients on daily basis and for that it is very
necessary.
Weakness
As a travel and tourism entrepreneur my weakness is I m not able convince the clients
sometimes that is the big loss for me as a travel entrepreneur. It is necessary for an entrepreneur
to deal with the clients otherwise it will affect the company's growth.
Threats
The major threat for the company is its competitor. As a travel and tourism entrepreneur
competitors are the biggest threat as clients are shifted from my company. As my convincing
power is not good so it will lead to the threat for the company as clients are going to other
companies that will affect my company's growth.
Opportunity
There lies vast number of opportunities which can allow me to become a successful
entrepreneur. By collaborating with the international market that will be the greatest opportunity
for the company to expand it.
(5 Characteristics of Successful Entrepreneurs, 2019).
TASK 2
Select the successful travel and tourism entrepreneur and analyse his or her business
development strategy
A travel and tourism entrepreneurs are playing important role in the business
development which always implement the strategies that help to improve the enterprise
operations and functions (Busayo and et.al., 2014). There are different type of travel and tourism
entrepreneur selected such as
Tom Merchant-
He is the owner and co-founder of luxury travel and life brand and their company won
award of travel brand of black tomato, epic tomato and studio travel brands etc. His company
mainly specialize in taking traveler off the beaten track. He was the son of technology
entrepreneur merchant grew in Birmingham, after completing his degree in the geography at the
Newcastle university. He always inspires with the new things and want the latest trend where in
the hotels, destinations, restaurants which are unique and incomparable (Samia, 2018).
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Tom merchant has unique strategies to implement innovative idea in the travel business
when they provide the best quality of services in different manner. Build leadership team strategy -They are focusing on building a team where they apply
different strategy to work. They always guide to their leadership team for putting more
efforts in business growth and development.
 Market Expansion and development strategy -Tom merchant is starting to expand their
business in different markets.
Darrell Wade
Darrell wade is the co-founder of the intrepid travel and executive chair of the intrepid
group; it is the world’s largest adventure travel experiences. He recognized to start his career as a
leader and entrepreneur or passionate for the sustainable tourism. He also supports the
sustainable development goals and objectives.
Benefits and cost strategy- Darrell has mainly proposed the cost benefits strategies in the tourism
industry where it contributes to the development and giving the service at low prices. He always
tries to maintain social and environment culture at workplace where staff member gains more
profit at global marketplace. Cost strategy help for business because many people attracts
towards their services.
Growth through Diversification- This strategy is mainly used for diversification where Darrell
promote their services in new markets. Sometimes, this strategy can be risky but they can use an
effective plan to maintain the diversification growth strategy in tourism. Darrell is implementing
this strategy to target the consumer those who always like to travel from one place to another
(Samia, 2018).
Paul Metselaar
Paul Metselaar founded the ovation travel group in 1984 and also serves as a chairman or
chief executives. He was followed some specific strategies that help to increase the profitability
in marketplace. Focusing on client requirement- He is also focusing on client requirement by analyzing
change in taste and preference of customers. Moreover, feedback is taken so that needs
can be identified.
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 Innovative - Innovative is the best strategy adopted by Paul to maintain their services at
the market He always tries to give unique services on time. Innovation may include new
method, ideas and workflows which will be beneficial for business development.
Sam Shank
Sam Shank is the CEO and co founder of hotel tonight which is the leading app for
booking hotel that deals for nights. He always passionate about the tourism sector so that they
start their own company. He is using different business development strategies such as
People analytical strategy- Sam Shank has planned this strategy to conduct survey and identify
people needs and receive feedback. This strategy starts by conversation with people and if
employee lose their interest, then it becomes difficult to compete in marketplace. In this way,
Sam Shank is putting efforts to collect the feedback and generate relevant outcomes.
Evaluating the factor that could led the success of enterprise's business organization
The success factors are the same as the one-person business that can manage their
operations and functions through team experts. In above discuss, it discusses about the different
successful entrepreneur in the tourism sector (Benson and Lashanta, 2017). They can plan
different strategies according to their need to explore their business process all over the world
but all entrepreneur has some common factors that support in each business to increase the
success and growth. Leadership- A leadership is a key success element that support the entire goals and
objective of business. Business depend on the leaders where how they influence their
team members towards their goals and achievement. Strategic and tactical plans- Planning and strategies are main component that help to
identify the requirement in the business process. It helps to complete the task in step by
step. Powerful decision- An effective leader or manager has capabilities to take powerful
decision regarding the business process development. They can analyze the situation
according to the requirement of business development.
 Effective communication- communication help to interact with the other members and
also determine their view point towards the development, it helps to share their unique
idea and implement in the service providing.
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TASK 3
A. Evaluation and Discussion of Sources of Finance Available for Proposed Project
For the starting a new project, Entrepreneur needs cash in hand for the purchase of
materials, assets, hiring employees and managers and bearing costs for running the business. For
all these, money is required. For the fulfilment of requirement of money, there are various
sources of finance. Sources of finance refers to the various ways through which entrepreneurs
can obtain money.
There are various sources of finance through which Entrepreneur can obtain money to
start new project. These sources of finance are as follows -
BANK LOAN – It is the most common source of finance used by small-medium
business and new start -ups. In this source, Entrepreneur can raise fund by taking loan. Every
bank offers different loans for different tenure and with different interest rates. Entrepreneur will
take loan according to their requirement. After some periods, they will have to repay the
principal amount with interest in instalments.
ISSUES SHARES – To raise funds from the public, Entrepreneur has to register their
business into recognized stock exchange. After that, they can issue equity and preference shares
to the public. Also, entrepreneurs are giving away an ownership stake in the company.
VENTURE CAPITAL – It is a private investment which is made into start-up
companies. In this source, money is provided by those investors who are expert in Travel and
Tourism sector. They also provide their experience, knowledge and networks to the entrepreneur.
If entrepreneur is not succeeded in running his new project, investors will end up losing
investment money. Thus, they are taking huge risk.
GOVERNMENT ASSISTANCE – Some government agencies and non-profits
organizations offers assistance such as grants and subsidies to entrepreneur. They provide
assistance on the basis of various conditions which he has to follow. Also, they assess the project
before offer such assistance on the basis of following criteria such as innovation, competition in
industry, beneficial for the society, significance and approaches etc (Martínez-Román and et.al.,
2015).
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B. Discussion and Justification of Market Assessment, Business Analysis And Cash Flow
Analysis
MARKET ASSESSMENT - Travel and tourism industry is seasonal according to the
weather. This industry follows certain law such as Health and Safety Law, Company Law,
Equality Act etc. This industry is sensitive to the economic fluctuations. This industry is growing
industry. This industry is starting using so many technologies such as Electronic vehicles,
automotive vehicles, mobile guest applications for the guides to travelers, mobile hub-spots etc.
Current trends of this industry are Last minutes’ bookings are increasing due to mobile
technologies and people are prefer for solo trip. Most common marketing strategies are being
used in this industry are as follows – Conducting trade show for the promotion and advertising in
Trade Publications etc.
BUSINESS ANALYSIS – For the business analysis company will gather background
information through Pestle analysis and Porter's five forces model. After that company will
analysis the impact of business on its stakeholders. Company will decide the business objectives
and accordingly determine its mission, vision and core values. Company will evaluate the
methods and strategies through which company will achieve its goals and objectives. Also,
company will analysis that how competitive its market is. Like this company will analysis its
market analysis.
CASH FLOW ANALYSIS – It is good to perform cash flow analysis of company in
order to get to know about the cash inflows and cash outflows of the business. For the analysis of
cash flow, company need to prepare cash flow statement in which 3 headings are given -
CASH FLOW FROM OPERATING ACTIVITY – Inflow from operating activities include
money received from clients. Outflow from operating activities include money paid to the
service provider.
CASH FLOW FROM INVESTMENT ACTIVITY – Inflow from investment activities include
renting the assets such as vehicles, dresses etc. Outflow from investment activities include
buying more assets.
CASH FLOW FROM FINANCING ACTIVITY - Inflow from financing activities include
getting loans from venture capitalists. Outflow from financing activities include paying back that
loan.
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After recording all the transactions in statement, company will add all the inflows and
subtract all the outflows in order to arriving at the closing balance. If the closing balance is
higher than the opening balance, you have positive cash flow. If it’s lower, you have negative
cash flow (Mazur, 2017).
Year 2017 Year 2018
Operations
Cash from customers £1500 £1300
Wage expenses £200 £400
Income £800 £300
Investing activities
Sale of land £1000 £800
Cash paid £750 £500
Financing activities
Borrowing £1200 £400
Bank loan £2000 £400
JUSTIFICATION – Current trend in industry is solo trip and our business is mainly
focused on the solo trip with completely online facilities. Students and employees love to do
work fast. Online facilities are also happened fast. Thus, this business can become successful if
marketing strategies are used correctly.
C. Preparation of Business Plan
EXECUTIVE SUMMARY – This plan has described about a new start up and different
elements which are required in it. Also, it has discussed about what marketing strategy will be
followed. It has also discussed about the market analysis, organizational structure, etc.
COMPANY DESCRIPTION – A new company will be start its operations in June 2019.
It will provide online product and services to people. It will give details and information of all
hotels and restaurants to people.
MARKET ANALYSIS – Company will target mainly on students and employees who
majorly focus on the solo trip. This market is growing fast because people are earning money
and spending their money into exploring new places. Company will use e-marketing strategies in
order to reach out to potential customers.
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ORGANIZATIONAL STRUCTURE – Company will follow Hierarchical Structure.
SERVICES – To provide means of transport, to provide the best hotel, to provide
traveling guider through online.
MARKETING STRATEGY – Company will use e-marketing strategy for the marketing
of its business through e-advertising, gaming advertising and sponsorship with famous
personality.
FUNDING REQUEST – Business will use venture capital for the funding in which
£33130.64 are required for the next 3 to 6 years.
FINANCIAL PROJECTIONS – Company will follow GAAP for the accounting
standards. Also, company will supply its financial information on the basis of yearly and half
yearly through Balance Sheet, Profit and Loss Account and Cash Flow Statement (McKeever,
2016).
SWOT ANALYSIS
STRENGTHS WEAKNESSES
Low cost of
Operations
Easily access to the
customers.
Low marketing
activities
Low market presence
OPPORTUNITIES THREATS
Focus on Solo Trips
Brand image creations
High competition
Rise in internet cost
BUDGET
TRANSACTIONS COSTS in £
Operational Costs £25
Marketing Costs £45
Administrating Costs £60
Total Costs £130
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CONCLUSION
As per discussion, it concluded that travel and tourism entrepreneur playing important
role in the business development process. It describes their traits and skills which required for
any successful entrepreneur. It describes to identify the strength and weakness for the
development benchmark. However, this report is discussed about the four successful travel and
tourism to analyze their business development strategies by evaluating the factors could have led
to the success in the business. Furthermore, evaluate the development plan on the basis of
business cash flow and business analysis. It also justifies the potential for the success of tourism
business.
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REFERENCES
Books and Journals
Benson, K. and Lashanta, S., 2017. Black fashion designers matter: A qualitative study exploring
the experiences of Black female fashion design entrepreneurs.
Busayo and et.al., 2014. Impacts of Tourism on the Economy of Ekiti State. Journal of Tourism
and Hospitality 3(1).
Davis, M.H., Hall, J.A. and Mayer, P.S., 2016. Developing a new measure of entrepreneurial
mindset: Reliability, validity, and implications for practitioners. Consulting Psychology
Journal: Practice and Research.68(1).p.21.
DeNisi, A.S., 2015. Some further thoughts on the entrepreneurial personality.
Kerr, S.P., Kerr, W.R. and Xu, T., 2018. Personality traits of entrepreneurs: a review of recent
literature. Foundations and Trends® in Entrepreneurship.14(3).pp.279-356.
Martínez-Román, J.A. and et.al., 2015. Innovativeness and business performances in tourism
SMEs. Annals of Tourism Research. 54. pp.118-135.
Mazur, V., 2017. Hospitality Industry as the Effective Instrument of Travel Business
Development. Journal of European Economy. 14(3). pp.268-279.
McKeever, M., 2016. How to write a business plan. Nolo.
Obschonka, M. and Stuetzer, M., 2017. Integrating psychological approaches to
entrepreneurship: the Entrepreneurial Personality System (EPS). Small Business
Economics.49(1).pp.203-231.
Olivari, J., 2016. Entrepreneurial traits and firm innovation. Eurasian Business Review.6(3).
pp.339-360.
Samia, S.N., 2018. The Jungle-Eco Resort Limited and its Marketing Challenges.
Schaper, M., 2016. Understanding the green entrepreneur. In Making Ecopreneurs (pp. 27-40).
Routledge.
Online
5 Characteristics of Successful Entrepreneurs.2019.[Online].Available
through<https://www.investopedia.com/articles/personal-finance/101014/10-
characteristics-successful-entrepreneurs.asp>
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