Analysis of Travel and Tourism Entrepreneurship and Skills Required

This report delves into the realm of travel and tourism entrepreneurship, examining the crucial skills and traits needed for success in this dynamic sector. It begins by outlining essential entrepreneurial abilities, such as creativity, confidence, and effective communication, and then proceeds to a self-appraisal of these skills, identifying strengths and weaknesses. The report further analyzes the development of an entrepreneurial enterprise, using the example of Thomas Cook, and evaluates the factors that contributed to its success. It also explores sources of finance and support available to travel and tourism enterprises and develops a persuasive business start-up plan. The report provides a comprehensive overview of the travel and tourism industry, highlighting the importance of adaptability, customer focus, and strategic planning for aspiring entrepreneurs.

TRAVEL AND TOURISM
ENTERPRENEUR

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Skills needed for successful entrepreneurship .................................................................3
1.2 Self Appraisal of entrepreneurial skills and traits to identify strengths and weaknesses for
development benchmark to be successful..............................................................................5
TASK 2............................................................................................................................................8
2.1 Analyse the development of an entrepreneurial enterprise .............................................8
2.2 Evaluate factors that led to the success of an enterprise .................................................9
TASK 3............................................................................................................................................9
3.1 Sources of finance and support available to enterprises in travel and tourism sector .....9
3.2 Develop and justify the potential for success of an enterprise in a travel and tourism
context..................................................................................................................................11
3.3 Present a Persuasive business start-up plan ...................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Travel and tourism industry is consider one of the well established sector that contribute
in earning huge revenues for the economy. They concentrate in delivering services related to
travelling, sightseeing, accommodation facilities etc. UK is found to be among 6th in number
under international tourism arrival. There are number of factors that affect this industry in
various ways that include social, economical, cultural, political elements. This report highlights
the entrepreneurial skills and traits that is needed to become a successful entrepreneur. There are
sources of finance that helps in developing travel and tourism enterprises. Being a successful
travel and tourism entrepreneur it is necessary for them to locate various opportunities that
require huge investments so that they can able to gain high financial gains in return. This sector
is common in the hospitality industry.. Government also play a vital role in this sector as they
come up with new and innovative ideas by formulating rules and regulations that has to be
followed by them.
TASK 1
1.1 Skills needed for successful entrepreneurship
It is necessary that entrepreneur must possess certain skills and traits that lead them to
achieve final objectives and aims in effective manner. As every business organisation have to
operate in dynamic environment hence, they have to work accordingly (Evans, Stonehouse, and
Campbell, 2012). There are number of abilities that is adopted to run the industry in constructive
manner. This also help in facing competition from numerous companies that is constituted in this
industry. Some traits that is required by entrepreneur is as follows: Creative and Innovative: This trait must be possessed by entrepreneur so that they can
perform operations creatively and differently. They should come up with new ideas and
thoughts so that final aims can be accomplished. Ambitious and Confident: This is a important trait that must be present in every
entrepreneur. He must be confident in his actions that will be performed by them in
proper way. Charismatic: This include presenting the personality in such a manner so that customers
and clients become impress with his characteristic. Thus, it is necessary to possess
pleasant personality.

 Self Sacrificing: there are number of conditions that require sacrificing comfort zone so
that proper achievement of entrepreneurial goals can be done. Set goals in conducive way: An entrepreneur must have the ability to set short and long
term goals so that they can work accordingly and results in attaining the final set aims in
proper way. There is some vision and mission for which every business institution have
to work which focusing on it. Maintaining healthy and good relation: It is the responsibility of entrepreneur to
maintain conducive relation with their clients and employees. This assists them to
construct their image for longer period of time.
 Clear plans: Entrepreneur should have clear picture of plans in their minds so that all
their work process must focus in single direction and lead to attainment of set targets in
conducive manner (Molz, 2012).
Certain skills that must be possessed by entrepreneur is described below: Planning and Organisation: It involve drafting all plans that is required to carry out the
entrepreneurial activities and than organising all resources in proper way so that final
aims can be accomplished. Facing Risks: Risks are part and parcel for business organisations. There are different
types and nature of risks that affect the company in number of ways. Thus entrepreneur
must consist the ability to face these challenges in proper way. Than only that business
man is known for running the operations properly. Effectively time management: This is very essential for running a business in appropriate
manner. Entrepreneur must have proper time management system that enable them to
conduct their tasks in proper time and in smooth way. Communication and interpersonal skills: Every entrepreneur must contain effective
communication skills so that they have the ability to influence behaviour of others. This
is a basic motive to impose strong impact on the customers so that it lead to generation of
high financial gains and outcomes. He must be able to communicate his decisions to all
people at different level and can express it clearly. Numeracy: This skill involve better understanding of calculations and numbers so that its
application can be performed in proper format and in effective manner.

 Travel and Tourism Skills: This is very much necessary to understand all activities that
is involved in performing motivational activities so that people can get attracted for
buying tourism services and products. Research and analytical skills: this is very essential in this sector as it involve gathering
all relevant data information and performing proper analysis to interpret according to
needs and wants.
 Leadership: It is very much important for an entrepreneur to be a leader so that he can
guide his team effectively and that results in reaching final goals and objectives in set
time period. He actually act as a representative of the company that focus on running
overall business operations efficiently. Therefore, it is indispensable to possess leadership
qualities so that final objectives can be accomplished (AlSayyad, 2013).
1.2 Self Appraisal of entrepreneurial skills and traits to identify strengths and weaknesses for
development benchmark to be successful
Traits and Skills Analysing strength and Weakness
Facing Risks: I am capable of facing many risks that come
across while conducting business transactions.
I have applied number of strategies in business
that minimize the effect of risks that get arise.
Leadership: I am very good in leading my team in effective
manner. I have huge number of workers
working together. All members are satisfied
with my leading style.
Set goals in conducive way: I have made clear goals for everyone that guide
each and every individual in company to
follow these that results in achieving final
outcome in conducive way.
Maintaining healthy and good relation: I have maintain many clients and hence able to
maintain good relations with my customers for

longer period of time.
Clear plans: I have framed clear plans and actions that has
to be performed in accurate mode. I have made
short and long term goals and have set time
period in which it has to be attained.
Effectively time management: I have excellent time management skills as I
have prepared proper schedule that involve
which tasks has to be performed and at what
time.
Communication skills: I am not very good in communicating
information to others and therefore I face many
problems related to it.
Self Motivation skills This is my weak point. I get afraid if any
unfavourable situation get occurs while
conducting business operations.
Selling skills: It is essential to perform selling activities in
proper manner. I am little effective in this part
as I always come up with modern and
advanced working process to carry out
business operations in correct manner.
Entrepreneurial Skills Ratings(Out of 10) Justification
Planning and Organisation 8 I can perform planning
function efficiently but I
require proper planning team
that can perform it better.
Facing Risks 7 I cannot able to understand all
risk factors that are present and
thus require more training in it.

Effectively time management 8 I can able to manage my time
schedule properly but
sometimes get failed due to
some reasons.
Communication and
interpersonal skills
7 I am not very good in
communication skills hence,
sometime have to face lot of
problems associated with it.
Numeracy 9 I Am very good in numerical
ability and calculations.
Travel and Tourism Skills 9 I have proper team that
manages all travel and tourism
sectors.
Research and analytical skills: 8 I can perform research
activities properly so that
decisions are made properly.
Leadership 7 I lack various leadership skills
that must be present.
Entrepreneurial Traits
Creative and Innovative 6 I lack this trait and hence get
fail in many key areas.
Ambitious and Confident 8 I am confident enough to face
all situations properly.
Charismatic 9 I have attractive personality.
Self Sacrificing 6 I do not possess this
characteristic and get into
trouble out of it.

Set goals in conducive way 9 I have clear goals set for mu
business.
Maintaining healthy and good
relation
9 I have many customers and
gave ability to retain them for
longer period of time.
Clear plans 9 I have formulated clear plans
set and provide guidance to
achieve them.
TASK 2
2.1 Analyse the development of an entrepreneurial enterprise
The most successful entrepreneur that can be taken in travel and tourism sector of UK is
Thomas Cook. He was the founder of well established travelling agency known as Thomas
Cook. As he has the hobby of visiting may places and was fond of travelling from one place to
another. He initiated his business playing a role of mediator between railway company and
passenger. Hence, he make arrangements for trip of school and college students. He started
enjoying this activity and started planning for tours for large number of people inside and outside
the country locations. This is a turning point in his life and receive first project for abroad
destination that was from Leicester to Calais. After it slowly they started expanding their
business all over Europe. Customers are also giving positive responses for their services. This
provide him motivation to expand his business so he involved his son and covert name of
organisation to Thomas and Sons.
Business development and Entrepreneurial strategy of Thomas cook is as follows:
 Locating correct and right opportunities: Thomas Cook have located the best opportunity
in business environment that is to gain high financial gains in by working in travel and
tourism sector. Hence, this pose him the well focussed area for his career (Hall, Timothy,
and Duval, 2012).
 Making decisions considering customer's needs: Thomas Cook was a great perceiver of
market conditions that are prevailing in current situation. This is a most important aspect
which make him successful in his business operations.

 Delivering quality services: Customers are consider real king of market place, therefore it
become necessary to know needs and wants of people and than frame services in
accordance to it.
 Perform the recruitment process in accurate way: Thomas Cook assists on expanding
their business operations by recruiting large number of people from outside sources so
that they can able to build most prospective team for longer period of time.
 Quantitative and Qualitative approach: Thomas Cook have to construct the balance
between qualitative and quantitative aspects so that business transactions can be run in
successful manner for longer period of time.
2.2 Evaluate factors that led to the success of an enterprise
Every entrepreneur do not become successful in their business hence, there are some
added factors that must be introduced in individual person. This enable entrepreneur to conduct
business in constructive manner. Some factors and elements that result to the success of
enterprise which is as follows:
 Innovative: innovation refers to introducing concepts, ideas, thoughts which is new and
fresh in nature. Hence, entrepreneur must be innovative in his thoughts.
 Honest: Thomas cook was a honest entrepreneur therefore, it make him successful in his
business and result in performing business operations in proper manner.
 Learning from past experience: This is very much useful for every entrepreneur. There
are number of situations that are favourable and unfavourable, both the conditions
provide learning lessons to entrepreneur.
 Creative in nature: creativity is very much necessary in conducting business in effective
manner. As there are number of competitors that are available in market place hence, it
become important to conduct tasks in different way and distinct from other competitors in
order to stand apart from them.
TASK 3
3.1 Sources of finance and support available to enterprises in travel and tourism sector
Finance is consider most important resource for carrying out business activities. Hence, it
is require to make optimum utilisation of funds so that it is allocated in key areas that lead to
earn financial gains. It is necessary to make decisions in this respect so that tourism sector does

not face any losses in future. There are number of alternatives that are available thus, travel and
tourism sector have to make decision regarding these options and choose best option out of it
(Xiang, Magnini, and Fesenmaier, 2015). There can be condition when business firm have to
borrow some amount of finance from outside sources. Various sources of finance that is
available in tourism sector is as follows:
(Source: Thomas Cook Group plc (TCG.L), 2018)
 Private Equity: This type of source include acquiring capital from high class society
people and rich organisations that are ready to invest in tourism sector. Leasing: In this type of source, tourism company finance some part or whole portion of
their project. The tourism institution develop a contract with a leasing company and in
return supply tools and equipments at a affordable and negotiable price. Loan from Banks: This is a most commonly used method in which business organisation
can take loans from banking institution in return of collateral security. Entrepreneur can
approach these banks and apply for amount that they want to acquire. Banks in return
charge interest in that amount.
Illustration 1: Financial position of Thomas Cook

 Angel Investors: It is a modern concept which is also known as informal investors is an
individual body which is established to render sustainable amount of capital in return for
some equity and debts of that company institution. Seed Capital: It refers to acquiring large amount of funds from friends, family people and
other individuals that are present in external environment. This is a basic source that gets
initially started from the base as all family members provide help with some sustainable
amount of capital that enable them to start their operations ans work process in
constructive mode. Venture Capital: It is constructed for rendering financial benefits to business
organisations with an aim of earning long term growth and outcomes. This is consider
one of the most riskier source of finance. Hence, company have to take decisions
regarding it very carefully while considering all factors and elements in appropriate
manner (Baker, 2014).
 Ministry Of Tourism: This ministry focuses on providing various grants so that tourism
sector can develop their infrastructure in proper manner and hence able to sustain for
longer period of time. There are number of discretionary fund system that have specific
focus.
3.2 Develop and justify the potential for success of an enterprise in a travel and tourism context
In order to establish successful business in travel and tourism sector, it is very much
important to consider all the factors that are present inside and outside the environment. There
are some elements that contribute in growth of institution while other hinders the performance
therefore, it become important to study all these elements in effective manner.
Business Analysis can be done through SWOT analysis that consist of strengths, weaknesses,
Opportunities, threats. Strengths and weaknesses are known as internal factors that travel and
tourism sector consist of. Opportunities and threats are consider external factors that are present
outside the business environment but affect the performance in various ways.
Another way of performing business analysis can be through PESTLE analysis that help
in analysing various factors that are discussed below:
 Political Factors: This is a important factor in which travel and tourism industry have to
make rules and regulations in accordance to political environment where it will going to
operate. Hence, it largely gets influenced by this factor in numerous ways.

 Environmental Factors: It involve factors like policies, laws that are followed in order to
carry out their operations and work process in effective and efficient manner.
 Social factors: This element include all potentials that are present in society and has to be
adopted by tourism sector so that they can develop themselves in constructive way.
 Technological factors: There are number of technological aspects that need to be consider
by travel and tourism sector so that they can able to run their business of travel and
tourism in effective manner.
 Legal Factors: There are number of legal rules and regulations that need to be adopted
while carrying out operations in respect to it (Forno, and Garibaldi, 2015).
 Economical factors: There are various economical components that include inflation,
deflation rates that are followed in that sector.
There are other market assessment that foster the growth of business plan of travel and tourism
sector that are illustrated below:
 By making use of digital platforms that aids in promoting the business in efficacious
manner. More concentration is provided on utilising all modern technology system in
business organisations.
 Another important point which must be consider is that more assistance should be there
for customer oriented services, this involve all tasks and decision must be framed in
accordance to consumer's point of view. There are other concepts that pertain carrying out facilities in such a way of supplying
high quality services to consumers so that they remain happy and satisfied for longer
period of time.
Cash Flow analysis: This is very much essential that involve studying cash outflows and
inflows for a particular time period. It enable travel and tourism sector to focus on all activities
that are consider under this process. Finance is involved in almost every work actions that is
conducted in this sector, hence, it become prominent to record all cash receipts and expenses that
is happening in particular time period. Therefore, cash flow analysis is adopted for financial
reporting purposes.
3.3 Present a Persuasive business start-up plan
Business plan is a process of developing actions that are focused in carrying out process
in such a way so that final goals and aims can be met out effectually. Plans provide basis for