Travel & Tourism Entrepreneur Assignment

Travel & Tourism
Entrepreneur
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Table of Contents
TASK 2............................................................................................................................................8
A) Development of entrepreneurial enterprise.............................................................................8
Evaluation of factors leading to success of organisation.............................................................9
TASK 3...........................................................................................................................................10
A) Sources of finance and support for proposed project............................................................10
B) Development of a business plan with market assessment, business analysis and cash-flow
analysis along with Justification of potential for success...........................................................11
C) Persuasive business plan for Travel and Tourism start-up....................................................12
CONCLUSION..............................................................................................................................14
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INTRODUCTION
Travel and tourism industry is one of the largest sectors which is growing at a rapid pace
owing to the global economic influences of environment. The major function of this industry is
to render assistance to individuals by providing them the facilities associated with
accommodation, sight-seeing, travelling etc. Travel and tourism entrepreneur is the key to
success and growth of this industry and makes use of their effective and efficient skills and traits
in order to ensure excellent customer service and optimum service delivery (Ahmad, 2015). This
industry possesses a vast scope to incorporate innovation within products and services so as to
meet the demands of people. The following report is divided into three tasks. The first task will
take into account the skills required to become successful entrepreneur along with a self
appraisal of entrepreneurial traits. The second task explores entrepreneurial development and
identifies the factors which lead to success of a venture. Third task comprises of a business plan
for gaining entry into travel and tourism industry.
TASK 1
A) Traits and skills to become successful travel and tourism entrepreneur
An entrepreneur has an important role while bringing up a new venture project. The
effectiveness and efficiency of an entrepreneur largely depends upon one's skills and traits which
they utilise to achieve the organisational short-term as well as long-term goals and objectives
(Cassel and Pettersson, 2015). Their major goal is to undertake activities which ensure maximum
customer satisfaction. In order to become successful in travel and tourism sector, one must have
the following skills and traits:-
TRAITS
Passion: A travel and tourism entrepreneur must possess immense passion towards the
venture project and this paves the way for encouraging them to take such efforts which ensure
success and growth of business enterprise (Carson, Carson. and Eimermann, 2018).
Innovation: This is the key to success of a business organisation. An entrepreneur should
possess an innovative mind and comes up with unique and creative ideas which can ensure
development of solutions to economic and social problems being faced by population in relation
to travel and tourism sector (7 Essential Skills Required to Succeed as An Entrepreneur, 2019).
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Competitive spirit: An entrepreneur who is employed within travel and tourism sector
must possess confidence in one's abilities and undertakes such activities and processes which
have the capability to bring about a positive change within society. Taking strategic decision and
devising effective strategies to gain an edge over competitors is the key trait of a successful
entrepreneur.
Goal oriented: In order to become a successful entrepreneur within travel and tourism
sector, it is essential that one devises the short term as well as the long term goals. This helps
them to measure the variances between actual and desired performance at a later stage and
undertake steps which can assist in reduction of these variances in future context.
SKILLS
Leadership: It is essential for an travel and tourism entrepreneur to possess leadership
skills as this provides assistance to one while taking important decisions independently
(Bredvold and Skålén, 2016). They are the ones who are responsible for assuming all the risks
within the project. Thus, effective leadership assists them in building communication with other
employees so as to ensure that activities and processes take place within the venture projects in
accordance with the set targets.
Constant planning: It is imperative that an entrepreneur does constant evaluation and
analysis of travel and tourism market in order to make plans which are aligned with the strategies
of competitors and ensure maximum customer satisfaction. It is post the evaluation of market
and competitors that entrepreneurs are able to devise effective strategies which can render the
upcoming project a strategic edge over rivals and assists it in gaining a higher stake in market.
Risk handling: A successful entrepreneur assumes all the risks that act as hindrances for
the upcoming project and takes steps so as to overcome or reduce the damage caused by these
risks. By undertaking risks in case of a new travel and tourism company, the scope for growth
and success of business enterprise enhances as the implementation of an emerging technology or
process may assist the entity in increasing the stake in market as well as the profitability levels.
Effective communication skills: It is significant that an entrepreneur possesses optimum
communication skills so as to build healthy relationship with clients, suppliers and other key
stakeholders. This skill renders competitive advantage to travel and tourism entrepreneur as they
possess the capability to persuade people to buy the products or services delivered by company
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by way of lucrative tour and holiday packages. Also, communication assists the entrepreneur in
building healthy relationship with employees and keeping them motivated at all the times.
B) Self appraisal of entrepreneurial traits against benchmarked development
The traits and skills possessed by an entrepreneur is a key factor which determines the
chances of growth and success of an enterprise (Deale, 2016). It ascertains the performance of an
entrepreneur in the direction of facilitating business growth and also takes into account the extent
to which an organisation succeeds under one's leadership. In this regard, I have conducted self
assessment which assists me in gaining an insight into my strengths and weaknesses for
becoming a successful entrepreneur within tour and travel industry. For this, I have awarded
every trait and skill of mine a score out of 10 on the basis of which I have classified it into
strengths and weaknesses. Following are certain traits and skills which act as strength and
weakness for me for successfully starting a venture project or carrying out an established
business:-
Basis Description Score (out
of 10)
Evidence
Strengths
Skill Planning &
Organising
Planning is the first step
for effectively executing
the tasks and achieving the
desired objectives in the
stipulated time frame
(Hingtgen and et. al.,
2015). This follows
organising which indicates
the prioritisation of tasks as
per the importance and
relevance. I am a person
who believes in optimum
planning and organisation
so as to make sure that
9 In past also, I
have been
praised by my
colleagues and
seniors for
effectively
planning and
organising the
activities in
order to ensure
that work is
carried out in
the desirable
manner.
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activities take place as per
the set targets.
Trait Motivation I am a highly confident
individual and strive to
undertake such activities
which ensure that I remain
motivated at all the times. I
make sure that even though
I lack certain qualities, I
remain focussed towards
strengthening my existing
strengths and working
towards overcoming my
weaknesses.
9 I possess high
knowledge of
new
geographical
locations and
always remain
eager to explore
new boundaries
which have not
yet been
explored so as
to launch a
tourism venture
there and
gaining success.
Innovation Unique and creative ideas
lay the foundation of
successful venture projects
and ensure the
development of solutions
for challenges being faced
by people in society
(Crossley and et. al., 2018).
In this regard, I am a
person with innovative
mindset and often come up
with new ways to carry out
the same activity every
8 My teachers and
peers always
praised me for
my new and
unique ideas for
completion of
projects and
assignments at
university.
Further, I keep
on conducting
research upon
the latest tools
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time. and techniques
being used in
marketplace to
come up with
innovative
ideas.
Weakness
es
Skill Risk
bearing
I have analysed that I am
not much capable of
assuming the risks and
liabilities alone which
hinders me from becoming
a successful travel and
tourism entrepreneur. This
may hinder me from
becoming a good capitalist
in future.
5 It has been
pointed out by
my colleagues
and peers in the
past that I
remain
apprehensive in
case of risks and
liabilities and
remain
inefficient in
dealing with
them
adequately.
Trait Leadership This determines the ability
of an individual to lead
other people or groups
within an enterprise. It has
been found out that I work
effectively when carrying
out an individual task but I
am not much efficient in
collaboratively working
and leading the team.
6 It has often been
pointed out by
my colleagues
and associates
that I lack
leadership skills
owing to which
I am not able to
persuade the
group for
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adopting my
way of working.
TASK 2
A) Development of entrepreneurial enterprise
One of the most famous personalities who have earned huge name and fame in taking
travel and tourism industry to great heights is the owner of Virgin Atlantic, Mr. Richard Branson.
This famous personality developed the organisation owing to the traits and skills possessed by
him which assisted in meeting the vision of becoming one of the leading firms within the
industry (Nikraftar and Hosseini, 2016). The personality traits as well as skills of Richard
Branson due to which Virgin Atlantic is at a top position in global market is as follows:-
Leadership: These skills assisted him in building a huge empire under the name of
“Virgin Group” and also establish an effective image within tour and travel industry. The biggest
merit of his personality was that he acted as a leader but only with the agreement of his staff
members which facilitated a feeling of cohesion as well as cooperation among employees (Khan
and Krishnamurthy, 2016). Owing to this, Richard Branson always asked for views and opinions
of other members of organisation and considered them important for effective decision-making.
Innovative mindset: Richard Branson is known for possessing an innovative mind owing
to which he has always come up with unique and creative ideas. It has been observed that he
shares his visions and ideologies with the staff members in order to attain a feedback upon the
same. This provides assistance in taking fair decisions in context of Virgin Atlantic.
Building healthy relationship: It has often been noticed that Richard Branson is an
individual who believes in socialising and building effective relationship with employees so as to
develop a collaborative culture with least scope for conflicts. The staff of Virgin Atlantic
considers him as a role model and looks upon him as a counsellor as well as motivator.
Obsession for work: It has been observed that Richard Branson has been a highly
dedicated, motivated and obsessed employee who emphasizes upon adopting such activities
which ensure betterment of company and achievement of organisational goals. He considers
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every activity as a challenge and strives to make sure that his performance yields effective
outcome for Virgin Atlantic.
Evaluation of factors leading to success of organisation
Virgin Atlantic is an airline which was founded by Mr. Branson in 1984. The main factor
that takes the Virgin Atlantic, in fact the whole Virgin group at top position is the strategies
adopted by its entrepreneur. Branson achieved a number of milestones on the journey towards
becoming a leading airline. He also joined hands by way of joint venture with the airline of
Malaysia & Singapore.
Owing to the personality traits as well as skills, Virgin Atlantic is at a top position in
airline industry in the present context. This owes to the business development strategy which was
adopted by Richard Branson with the passage of time which shape the current achievements of
company, this is as follows:-
Strategy of new venture: Over years, Virgin Atlantic has entered partnerships or joined
hands with other airlines, hotels and tourism companies so that this firm can attract a large
number of consumers by providing good quality services associated with accommodation also
along with the air tickets. For this, Branson adopted the strategy of joint venture with both the
Malaysian and Singapore airlines such as Delta and significantly attained success thereby
gaining a high stake in market and enhancing the profitability of airlines. Further, this
organisation entered into joint venture with TCS so as to invest effectively in operational
efficiencies and technological innovations with the aim to gain market leadership. The
partnership of Virgin Atlantic with TCS assisted the organisation in enhancing its infrastructural
facilities so as to assist in company's key business objective of becoming a leading airline (Virgin
Atlantic Airlines Extends Strategic Partnership with TCS, 2019).
To make this joint venture successful, Branson adopted a number of assisting strategies
and ways through which acted as the success factors to help Virgin Atlantic in achieving its
vision of becoming a leader within airline industry. Such assistance strategies (success factors)
are described below:-
Promotional campaigns- Virgin Atlantic and Delta together launched their first joint
marketing programme with an aim to market and promote each other's transatlantic flights with
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an emphasis upon brand's alignment with provision of excellent customer service delivery. To
create awareness about their partnership among the population, they introduced experiential pop-
up spaces in the vicinity of New Year Stock Exchange and also in Canary Wharf of London.
Here, demonstration of cabin crew, business class cabins, check-in desk staff's use of Google
Glass technology was given along with trials for visitors to attend flight simulator besides the
pilot of Delta (Virgin Atlantic and Delta launch first joint marketing push, 2019). Further, Virgin
Atlantic also uses a number of promotional strategies to create awareness among customers
about their business and high class facilities. Promotion is done by company by using different
promotional techniques such as TV, Radio, social media and others (Omerzel, 2015).
Discounts and other offers- For increasing sales, Virgin Atlantic use the strategy of
offers and discount or one free ticket with two. By providing concession on the tickets for the
children, they also use this strategy for increasing the sales.
TASK 3
The travel and tourism entrepreneur is planning to launch a new hotel under the name of
“Fantasizing Travels” which will have some unique facilities to offer to assist in gaining the
attention of a large quantum of population. Fantasizing Travels is a hotel which will have 24
hours check in and checkout facilities which aims to provide assistance and convenience to
population. Further, services such as free internet, television, fun activities, concerts, fitness
centres, spa, laundry, boutique etc. will be rendered to public so as to attract people towards the
business. Online booking will be available for hotel rooms via the website of company and the
feature of electronic ticketing will be provided to the customers to ensure their convenience.
A) Sources of finance and support for proposed project
The travel and tourism entrepreneur have to undergo several difficulties and challenges
while procuring funds for starting a new venture project. The entrepreneur has decided to open a
new tour and travel enterprise under the name “Fantasizing Travels” for which he would require
capital. There are a number of sources of capital required for starting a new business within
travel and tourism industry. Some of the available sources for initiating a new travel and tourism
company are:-
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Personal Investment: This is one of the best sources of capital which is available to the
travel and tourism entrepreneur. This source is easy and very quickly accessible for the
entrepreneur. Further the added advantage here is that there are no payback terms or equity
transfers in this source of finance (Sheldon, Pollock and Daniele, 2017). This is commonly
referred to as seed capital.
Family and Friends: This is yet another ease source of procuring finance for starting a
new tour and travel business. This source of finance does not require any kind of documentation
and here the funds can be easily accessed.
Bank Loan: Banks, also usually referred to as conservative lenders grant loan to travel
and tourism entrepreneur against pledge of any external asset. This source of procuring funds
requires immense documentation and other formalities and also involved payback conditions
together with interest associated with it. This source is generally hard to tap owing to inadequacy
of assets (Omerzel, 2015).
Investors: It is most common source for procuring funds for opening a new tour and
travel business. Here, funding is dependent upon venture investors who maintain their stake in
ownership of funded venture project.
Overdraft facility: This is a facility given by banks to entrepreneurs wherein they allow
the account holder to withdraw excess money over the existing balance in their savings account.
This is a type of credit agreement which is entered between account holder and financial
institution (Bassey, 2015). This provides assistance to tour and travel entrepreneur for raising
short-term cash to initiate a business.
Post the evaluation of available sources of funds, entrepreneur has decided to raise capital
through a combination of three sources, namely, bank loan (30%), personal investment (10%)
and investor’s shares (60%).
B) Development of a business plan with market assessment, business analysis and cash-flow
analysis along with Justification of potential for success
For starting a new venture, it is essential that firm takes into account the market and
industry so as to develop tactics and strategies that can provide an edge to company over existing
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companies within tour & travel sector (Rodrigues, Rodrigues and Peroff, 2015). In this regard,
before starting “Fantasizing Travels”, entrepreneur has done market analysis
The market potential for this company is huge and this entity will give tough competition
to the existing rivals owing to the high quality accommodation and entertainment facilities that
this venture is striving to provide. The target segment of customers for the entrepreneur of
Fantasizing Travels will be personnel who travel on a routine basis for business or leisure.
Trekking enthusiasts are expected to get attracted to this enterprise as the company will offer
affordable packages with lucrative offers for trek. The target market is selected to be London,
United Kingdom. London has been strategically selected as the location for this upcoming
project as being the capital of UK, this city is equipped with high quality infrastructural,
communication, transportation and other services which are necessary for entrepreneur to
formulate the setup of the new start-up business project.
(Source: Contribution of Travel & Tourism to UK GDP, 2019)
Travel and Tourism industry plays a significant role in the growth of UK economy. The
total contribution of this sector to GDP of country has been constantly increasing over a period
of last some years and reached 218 bi
lion British pounds in 2018. This reflects the potential for Fantasizing Travels to provide high
quality services and excel at UK marketplace.
C) Persuasive business plan for Travel and Tourism start-up
The business plan for Fantasizing Travels is as follows:-
Start-up Summary: This entity will be situated at the heart of London in Mayfair area
so as to gain the attention of a large number of tourists and local people. The startup expenses
inclusive of capital are estimated to be approximately 215000$. The funding will be sourced by
owner, investors and bank loan. This entity will operate within hospitality industry to provide
high quality accommodation and entertainment facilities.
Business Objective: The objectives of Fantasizing Travels are proposed to be as
follows:-
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To conduct business affairs as per the code of conduct and practices prescribed for hospitality
industry.
To offer high quality accommodation and other related services to customers for ensuring
maximum consumer satisfaction.
Vision: To become a leader in Tourism & Travel industry in a time span of 3 years and
increase the profits by 35%.
Mission: To provide a relaxing and comfortable stay to guests and provide leisure
activities for their entertainment.
Key attractions: Excellent customer service, 24 hours facilities, high quality services
and ambience of the hotel.
Design: The culture of Fantasizing Travels would be aimed at the welfare of employees
and facilitating a positive working atmosphere across the organisational premises. Further, the
branding of this company will be done by making use of social media and digital marketing.
Operational activities: The operations of this venture will be carried out with the help of
20 employees. This would cause issues such as diversity owing to the presence of people
belonging to different national and cultural backgrounds. This entity would comply with all the
necessary travel and tourism laws and legislations. This entity would adopt penetrative pricing in
the initial 6 months of its operations with a view to gain the attention of people present in market
place. The organisation follows functional structure and in this regard, the chart of this company
is as follows:-
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Illustration 1: Organisational Chart of Fantasizing Travels
(Source: Organisational Chart of Fantasizing Travels, 2019)
Marketing Channels: This organization will make use of social media marketing
through Facebook, Instagram, Twitter and also focus upon making use of chat bots to
communicate with clients on website.
Financial Projections: “To enhance the sales of company by 18% by the end of next 2
years”.
CASH FLOW PROJECTIONS
PARTICULARS YEAR 1 YEAR 2
Cash Inflow (£)
Sales 21000 25000
TOTAL 21000 25000
Cash Outflow (£)
Rent 5000 6000
Salary 2600 3500
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