Impact of Inflation on Barrhead Travel Holidays Operations

This project examines the impact of inflation on the tourism industry, specifically focusing on Barrhead Travel Holidays. It begins with an introduction to the tourism sector and its economic significance, followed by an analysis of how inflation affects the industry. The project identifies the major causes of inflation, including demand-pull, cost-push, and built-in inflation, and discusses their effe...Read More

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Key operations and markets
Major key operations of Barrhead Travel Holidays encompasses
providing holiday packages, business travel, river cruises and
many more to their customers. They act as an online booking
agents taking booking options from varied visitors. They provide
different budget-friendly holiday packages for serving the needs
of differentiated customers as per their wants. They provide their
services on a world-wide basis which consists of New York, Las
Vegas, Australia, Japan and many more. Their holiday packages
are also fully covered through ATOL scheme. They also provide
flexible cancellation and amending policies which can be taken by
travellers whenever they needed. Their target market segment
comprises of those people who wants to explore differentiated
destinations alone or with their family and friends. They target
those individuals who likes to travel for business trips on a
constant manner.
Conclusion
From the above presented information, it has been concluded that inflation
impact tourism industry on a significant manner. This has impacted spending
patterns of individuals whereby lessen their purchasing power. Inflationary
period can led varied organisations to loose their loyal customers as well as
decrease profit margins in a strategic manner. Causes of inflation
encompasses of demand-pull, cost-push as well as built-in aspect which affect
organisation's performance in a significant manner. Strategies that can be
undertaken by organisational managers in respect to government policies
encompasses of monetary policy, deferred payments, expansionary practices
in a strategic manner. It is imperative for government to concentrate more on
surplus budgets rather than debt financing in a strategic manner. Monetary
policy is considered as vital measure for minimizing the inflated practices and
control the flow of money supply in a specified economy.
Inflation management
strategies deployed
Inflation is essentially caused due to non-
accomplishment of supply in relation to demands. This
can be controlled through maintaining balance
between supplies and demands for controlling the
collective aspects in an effective manner. Inflation
erodes purchasing power of individuals which affect
businesses in a significant manner. Rising prices
results in fewer people being able to procure certain
commodities and services. Expansionary monetary
policies which was introduced by central bank for
spuring growth in regards with domestic economy
drove up the prices due to future expectations in an
effective manner. It has been discovered that
monetary policy is considered as one of the vital
measure or strategy which is used by governments for
controlling inflation. It is considered as useful for an
economy due to demand-pull for controlling inflation in
an effective manner. Bank of England which is
considered as Central Bank formulate varied strategies
such as raise the reserve ratio, bank rates and can sell
securities in an open market in an exponential manner.
Monetary policy can essentially control the money
supply in a specified economy. For minimizing inflation,
government withdraws specified paper notes or coins
from their circulation in a strategic manner. Inflation
can also be measured through increased savings of
individuals which can help them to spend rationally at
the times of high prices of goods and services.
Managers of Barrhead Travel Holidays should adopt
strategies while keeping government policies in mind
for performing well in tourism industry. They should
have surplus budget for operating their operations in a
strategic manner. It is imperative for them to being
prepare for the unexpected practices for managing
their operations and enhance performance in a
strategic manner.
Company background and overview
Barrhead Travel Holidays is an award winning travel agency
which help individuals to plan their perfect plan. They
essentially provides best prices, impartial advice as well as
the widest variety of holiday packages. It is private limited
company which was incorporated in 1975. Barrhead Travel
Holidays is considered as major market player in UK travel
industry. They are considered as financially secure which led
them to identify their abilities into introducing exiting
products for attracting customers in a significant manner.
They works on their mission which states that they are
passionate for providing valuable services to their customers
by driving their capabilities for gaining competitive
advantage.
References
A ra m M a A and Moore M Terrori m and corporate ocial re pon i ilit Te tin t e impact o attac on e a ior o rnal o nternationalb h s, ., D u, L. . , E. ., 2019. s s s s b y: s g h f ks CSR b h v . J u f I
ine Polic ppBus ss y. 2(3). .237-257.
Ali and t Al T e impact o to ri m rene a le ener and economic ro t on ecolo ical ootprint and nat ral re o rce A panel data anal i, Q. E . ., 2021. h f u s , w b gy, g w h g f u s u s: ys s.
e o rce Polic pR s u s y. 74. .102365.
Allam T e impact o oard c aracteri tic and o ner ip identit on a enc co t and irm per ormance e idence orporate o ernance T e, B. S., 2018. h f b h s s w sh y g y s s f f : UK v . C G v : h
nternational o rnal o ine in ocietI J u f Bus ss S y.
an M oon and P ocal re ident pport or port to ri m de elopment T e moderatin e ect o to ri m dependenc o rnal oCh g, . X., Ch g, Y. O. Ng, L. ., 2020. L s s’ su f s u s v : h g ff f u s y. J u f
port To ri m ppS & u s . 24(3). .215-234.
Inflationary periods and main
causes
Inflationary period illustrates as an economic situation whereby prices
of commodities and services rises on a constant basis. At the time of
high inflation rates, customers are required to spend more money for
procuring the goods or availing services. High inflation restricts
individuals in spending their money at leisure activities. They try to
spend and increase their savings in a rational manner. Organisations
suffer from inflationary period as it decreases their sales and
ultimately lower down their profit margins.
Major causes of inflation in regards with Barrhead Travel Holidays are
mentioned below:
Demand-pull inflation effect- It occurs when increased
supply of money as well as credit stimulates overall demands in
relevance with products and services in a rapid manner as compared
to production capacity of an economy.
Cost push inflation effect- It is considered as a result of increasing
prices through production process inputs.
Built-in inflation- It is related to adaptive expectations or idea that
individuals presumed about current inflation rates to be continue in
future.
Devaluation- It can be understood as a situation whereby decline in
the value of currency make imports as well as exports more
competitive in a particular economy.
Impacts of inflations on company’s
operations and performance
High inflation rates led to hinder company's performance and operations in a
significant manner. Due to high inflation rates, spending patterns of individuals
have changed which led them to avoid leisure travel practices in a significant
manner. These practices led tourism companies to lower down their cost and
offer discounted products to customers for their survival. Continuous discounted
offers led to hamper their profit margins as well as performance in the long run.
Apart from purchasing power, covid-19 implications also hinder the performance
and operations of tourism companies in relation to travel, hospitality, tour
operators, agencies and many more. Due to less profit margins, managers of
Barrhead Travel Holidays were unable to provide salaries to their employees on
timely basis. This practice led in hampering their performance and operations in a
significant manner. This also led to demotivated employees which can hinder
their performance and productivity in a strategic manner. Employees of Barrhead
Travel Holidays also face this challenge while performing their tasks in a strategic
manner.