Analyzing Inflation's Impact on Hays Travel: A Business Project

This project analyzes the impact of inflation on Hays Travel, a UK-based independent travel agent. The project begins with an introduction highlighting the global issue of inflation and its effect on business revenue and consumer buying power. It then provides a company background and overview of Hays Travel, including its operations, key markets, and services. The core of the project examines the inflationary periods, main causes of inflation, and their specific impact on Hays Travel, particularly during the COVID-19 pandemic, focusing on the effects of increased money supply and policy regulations. The project concludes by discussing inflation management theories, including control of money policy, fiscal policies, and supply-side policies. These strategies are crucial for mitigating the negative impacts of inflation on the tourism industry. The project uses various academic sources to support its analysis and findings. The project aims to provide an in-depth understanding of how inflation affects a travel agency and the strategic approaches to manage it.

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Introduction
In the present time, inflation has become a major issue
all across the world as it has direct impact on the
buying capacity of individuals and also influences the
revenue and profit margin of the business organizations
in profound manner. To create suitable strategies to
deal with inflation, it is imperative for the companies
to assess the inflation regularly as it makes them
enable in terms of structuring suitable strategies to deal
with the negative impact of inflation.
Key operations and markets Conclusion
After going through the above-
mentioned information, it is
analyzed that inflation has
become a major issue all across
the world as it has direct impact
on the buying capacity of
individuals and also influences
the revenue and profit margin of
the business organizations in
profound manner.
Inflation management theories
deployed
•Control of money policy: Money
supply and inflation are two
components which are significantly
associated with each-other.
•Fiscal Policies: Through fiscal
policies, it is possible to deal with
inflation present within the
economy effectively. By high rate
of income tax, it is easy to reduce
spending and inflationary pressure
as well.
•Supply-side policies: This policy
is considered highly imperative in
order to enhance competitiveness
along with the efficiency of
economy which creates direct
pressure of long-term cost (Gursoy
and et. al., 2021).
Company background and overview
Hays Travel organization is considered as an
independent chain of travel agent working to offer
suitable tour pancakes to the customers across
different locations all around the world. It is
headquartered in England and owns high number of
travel shops within UK. In addition to this, they are
likely to use their own tour operators such as Jet 2
and TUI with an aim to offer suitable tour packages
for the purpose of holidays to the people living
across UK.
Hays travel is a popular tour operator of UK that
is working as an independent travel agent across
the country. The major locations covered by the
respective travel entity are Turkey, Greece,
Portugal, Malta and more. The respective entity
aims to offer valuable services as well as
experience to their customers in order to build
long-term relationship with them. The first call
center of Hays was opened in the year of 1990
and Hays independent group was formulated in
1995 (ABOUT HAYS TRAVEL, 2022).
References
•Yeh, S.S., 2021. Tourism recovery strategy against COVID-19 pandemic. Tourism Recreation
Research, 46(2), pp.188-194.
•Khalid, U., Okafor, L.E. and Burzynska, K., 2021. Does the size of the tourism sector influence the
economic policy response to the COVID-19 pandemic?. Current Issues in Tourism, 24(19),
pp.2801-2820.
•Cheung and et. al., 2021. The impact of COVID-19 pandemic on the psychological needs of
tourists: Implications for the travel and tourism industry. Journal of Travel & Tourism
Marketing, 38(2), pp.155-166.
•Online
•
•Gross sales of Hays Travel Limited in the United Kingdom (UK) from 2008 to 2021. [Online].
Available through :<
https://www.statista.com/statistics/956010/hays-travel-ltd-gross-value-of-sales//>
•ABOUT HAYS TRAVEL, 2022. [Online]. Available through :<
https://www.haystravel.co.uk/about/>
In the present era, inflation has become a major issue all across the
world as it has direct impact on the buying capacity of individuals
and also influences the revenue and profit margin of the business
organizations in profound manner. To deal with the adverse impact
of inflation, it is imperative to structure suitable strategies (Khalid,
Okafor and Burzynska, 2021). Here, it is found that inflation occurs
due to ample of reasons such as increased supply of money, cost-
plus inflation, policies & regulations and so on. Here, high amount
of inflation has been witnessed by the respective entity during the
COVID-19 pandemic due to lack of material, resources, availability
of necessary raw material and more.
In context of the selected business organization, the main cause of
high inflation is increasing supply of money within the economy.
During high money supply, people are less likely to consider before
spending their money which increased flow of money in the
economy and further lead towards increment of inflation in
significant manner. Further, the structure of policies & regulations
created by high authorities are also likely to create inflation within
the economy.
Inflationary periods and main
causes and its impact on company

Company Background and
Overview
Hays Travel organization is considered as an independent chain of travel agent working to offer suitable tour
pancakes to the customers across different locations all around the world. It is headquartered in England and owns
high number of travel shops within UK. In addition to this, they are likely to use their own tour operators such as
Jet 2 and TUI with an aim to offer suitable tour packages for the purpose of holidays to the people living across
UK. It was founded in the year of 1980 and now has become a successful tour operator which has travel shops
across the country. It is resulted of their expansion across different locations which resulted as huge number of
independent travel shops. By being an forerunner player, they value for the expectations and sentiments of
customers and strive to provide the best possible experiences to their customers. They are likely to create tour
packages for different locations including Greece, Portugal, USA, Malta and more. Along with this, they ensure to
offer the best possible experience to their customers. Now, they are facing significant impact of inflation that will
affect their future performance as well.

Key Operations and Market
Hays travel is a popular tour operator of UK that is working as an independent travel agent across the
country. It offers suitable tour pancakes to the customers across different locations all around the
world. It is headquartered in England and owns high number of travel shops within UK. In addition to
this, they are likely to use their own tour operators such as Jet 2 and TUI with an aim to offer suitable
tour packages for the purpose of holidays to the people living across UK. The major locations covered
by the respective travel entity are Turkey, Greece, Portugal, Malta and more.
Thomas Cook which was a collapse tour operator was acquired by Hays Travel in the year of 2019.
This acquisition seemed helpful for the respective company in terms of enhancing and growing the
business in future period of time. Also, the entire deal cost nearly 7.8 million that also increase the
overall staff size of the company. Due to this, the profit margin of the respective organization also
minimized than previous years Gross sales of Hays Travel Limited in the United Kingdom (UK) from
2008 to 2021).

Inflationary period and main
causes
In the present era, inflation has become a major issue all across the world as it has direct impact on
the buying capacity of individuals and also influences the revenue and profit margin of the business
organizations in profound manner. To deal with the adverse impact of inflation, it is imperative to
structure suitable strategies (Khalid, Okafor and Burzynska, 2021). Here, it is found that inflation
occurs due to ample of reasons such as increased supply of money, cost-plus inflation, policies &
regulations and so on. Here, high amount of inflation has been witnessed by the respective entity
during the COVID-19 pandemic due to lack of material, resources, availability of necessary raw
material and more. Due to these reasons, the overall price of services being offered by the respective
entity also got enhanced significantly. The selected entity used to arrange tour packages for
customers.

Inflation management theories deployed
Nowadays, inflation has become a crucial component that profoundly influences the function ability
and operations of the companies. Here, tourism industry is likely to have major impacts of inflation
that leads towards increment in the overall price of tourism services and pancakes significantly.To
control the negative impacts of inflation, suitable strategies followed by the tourism companies are
mentioned as under: Control of money policy: Money supply and inflation are two components
which are significantly associated with each-other (Brouder, 2020). By following the respective
approach, it is possible for the companies to keep control over the inflation. Fiscal Policies: Through
fiscal policies, it is possible to deal with inflation present within the economy effectively. By high rate
of income tax, it is easy to reduce spending and inflationary pressure as well. Supply-side policies:
This policy is considered highly imperative in order to enhance competitiveness along with the
efficiency of economy which creates direct pressure of long-term cost (Gursoy and et. al., 2021).

Conclusion
After going through the above-mentioned information, it is analyzed that inflation has
become a major issue all across the world as it has direct impact on the buying capacity of
individuals and also influences the revenue and profit margin of the business organizations in
profound manner. To create suitable strategies to deal with inflation, it is imperative for the
companies to assess the inflation regularly as it makes them enable in terms of structuring
suitable strategies to deal with the negative impact of inflation.