Travel and Tourism Entrepreneurship: Skills, Analysis, Planning Report

This report delves into the multifaceted world of travel and tourism entrepreneurship. It begins by identifying the crucial skills needed for success in this dynamic industry, followed by a self-appraisal section that highlights strengths and weaknesses. The report then analyzes the development of entrepreneurial enterprises, using Richard Branson and Virgin Atlantic as a case study, exploring the factors contributing to their success. Furthermore, it examines various sources of finance and support available within the travel and tourism sector and provides guidance on developing and justifying the potential for success of a new enterprise. Finally, it presents a persuasive business start-up plan tailored to the travel and tourism industry, offering a comprehensive overview of the key elements required to launch a successful venture. The report aims to equip aspiring entrepreneurs with the knowledge and tools necessary to thrive in this competitive field.

TRAVEL AND TOURISM
ENTREPRENEUR

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Skills needed for successful entrepreneurship..................................................................1
1.2 Self-appraisal for identifying strengths and weaknesses..................................................2
TASK 2............................................................................................................................................3
2.1 Analysing the development of an entrepreneurial enterprise...........................................3
2.2 Factors that have led to the success of an enterprise........................................................4
TASK 3............................................................................................................................................5
3.1 Source of finance and support available in travel and tourism sector..............................5
3.2 Developing and justifying the potential for success of an enterprise...............................6
3.3 Persuasive business start-up plan.....................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Travel and tourism plays a significant role in the economy of a nation. They provide with
the service of travelling, accommodation, sightseeing etc., where ever the travellers wants to
visit. A successful entrepreneur is the one who manages and develop organisation so as to gain
benefits and profit (Hallak, Brown and Lindsay, 2012). The assignment is all about travel and
tourism entrepreneurial skills, and majorly focuses on the skills and knowledge along with
strengths and weaknesses that is required to run a business in an effective manner. Managerial
and professional skills is also discussed that is required by an entrepreneur so as to sustain in the
market for a longer period of time is mentioned in the assignment. Lastly, business start-up and
planning for launching a new business is explained in context with travel and tourism sector.
TASK 1
1.1 Skills needed for successful entrepreneurship
As compared to other sectors the industry of travel and tourism is a fast growing and
many young entrepreneurs are attracted by this. It provides with lot of opportunities who are
passionate about travelling. It can be said that travel and tourism sector has been divide into
different areas such as accommodation, restaurants, transportation, entertainment etc., as this
industry is all based on creativity of how to attract more and more travellers towards them and
there are skills that are required for the same are given below:
Creative Thinker: It has been identified that travel and tourism sector is considered as
one of the creative sector. Companies that comes under this provides best offers that have not
being given by any other organisation. This enables them in attracting more and more travellers
towards them. So, it is important for an entrepreneur to think out of the box with some of
exciting ideas (Komppula, 2014).
Information Seeking: An individual who is working in this sector must have adequate
information in order to start or provide relative information to its customers. This can be attained
through various sources and it will help an entrepreneur in starting off the business properly.
Systematic Planning: Planning is determined as one of the essential skills that must be
posses by an entrepreneur as this sector needs various things to be organised and carry out
things properly. For this it is important that individual have set goals and targets so that it can be
achieved in order to satisfy the needs and wants of customers.
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Interpersonal Skills: Travel and tourism sector requires a lot of interaction with
customers as well as employees who are working in an organisation. Thus, it is required that a
person has interpersonal skills so as to influence it clients with attractive offers. Motivation and
encouragement is one of the essential parts so as to keep their morale boosted (Xiang, Magnini
and Fesenmaier, 2015).
Management Skills: An entrepreneur must have this skills so that he/she can manage and
organise all the task in a better manner. This enable them in handling the situation in an effective
way so that any kind of chaos can be eliminated.
Thus, points mentioned above should posses by an entrepreneur so that business can be
run in an effective manner. Through this entrepreneur can get maximum benefits and growth in
business operations.
1.2 Self-appraisal for identifying strengths and weaknesses
Self evaluation will help an individual about the strengths and weakness and the points on
which he/she has to work. This will help an entrepreneur in incorporating things that are required
and eliminating or finds a better way in order to overcome all the issues.
Strengths:
Motivation: This helps me to keep me boosted and assist me in enhancing by strengths.
For example: Good knowledge of geographical areas always keeps me motivated and encourage
me to explore some new areas so that I can enhancing my existing knowledge. As a result it is
assisting me to run my business in an effective manner (Marchant and Mottiar, 2011).
Better Understanding and good relations with other: As I have good interpersonal skills
and it helping me in interacting with customers with consumers and clients. Thus, it is aiding me
in becoming successful entrepreneur.
Filled with innovative ideas: New and creative thoughts is assisting me in planning an
appropriate strategies so that it can pull attention of maximum number of people. For this, me
and my company is taking feedbacks from travellers in order to know their choices and
preferences.
Efficient in planning and organising: Planning is an essential factor for running a
business in an effective manner. I am very good in planning at lower cost it is enabling me in
organising trips at minimal cost price. As a result it is helping me in attracting more and more
customers (Ramukumba and et. al., 2012).
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Weakness:
Less efficient in maintaining finance: In terms of finance I am not so good as its my
weaknesses in maintaining financial records on a regular basis. As a result wrong inputs are
entered and its is affecting my balance sheet.
Risk bearing: Due to inefficiency in maintaining financial records it is creating lot of
problem in running my business in an effective manner. Bearing risk alone is hampering my
business operations.
Strategies:
There are various mediums through which an individual can enhance their skills and
knowledge like for developing communication skills a person can join personality development
sessions. Other than this, accounting classes will help me in improving my financial capabilities
therefore, it will assist me maintaining all the records in an effective manner.
TASK 2
2.1 Analysing the development of an entrepreneurial enterprise
Evaluating someone's personality will always act as an motivational element for others.
So, famous personality that has been discussed in this assignment in relation with travel and
tourism is Richard Branson who has started his business named Virgin Atlantic. Therefore, skills
that are possesses by Mr. Branson is mentioned below:
Innovative: Mr. Branson is very good in implementing innovative ideas in every new
project which is assisting them in gaining maximum benefits in shorter period of time. He is
sharing his thoughts and views in context with ticket fares with his subordinates and employees
as a result it is helping them in making proper decision (Molz, 2012).
Bonding: As he is involving his employees in every decision thus, it is helping them in
maintaining a strong bond between its workers. He is not discriminating amongst individuals
because of the qualities he is possessing it is making him a hero in front of his staffs.
A good leader: It is important that a person acquire leadership quality as it helps them in
operating its business in an effective manner. In case of Branson, this helped him in setting up a
huge umpire named as Virgin Group. Along with this it assisted them in establishing its business
chains in Hotel and tourism. Apart form this, he is maintaining a better relation amongst workers
who are working in his organisation (Denicolai, Cioccarelli and Zucchella, 2010).
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Obsession for work: Whatever work he does it is doing with full enthusiasm which is
enabling him in performing all his task or activities in an effective manner. Therefore, this
quality helps him in giving 100% in his business operations. As a result all the challenges are
accepted by him and through this they are attaining a better position in market area.
2.2 Factors that have led to the success of an enterprise
Virgin Atlantic is a renowned organisation that is providing travellers with the facilities
of travel and tourism in United Kingdom. They are making appropriate strategies so that they can
make innovative plan of action. Company was established in the year 1984, with the name
Virgin airlines. Their first fight that was started for public was on 22 June in 1984. Later on he
has expanded his business in 1985 by establishing his hotels and named as Virgin Hotels. In the
year around 1987, through his airline services he has generated more and more revenues by
selling tickets to round 1 million passengers. Gradually, they have improved their business
operations by providing facilities of sleeping seats in business class as a result it has enhanced
their business in terms of sales and profitability (Kayar and Kozak, 2010).
Strategies that was made in order to achieve this targets are given below:
Promotional strategies: In this new market scenario various new tools and technologies
are present which company can adopt in order to gain maximum benefits. In their promotional
activities company is giving details about all offers of good packages so that travellers can avail
them accordingly.
Marketing strategies: Through Marketing strategies Virgin Atlantic, company is giving
all the details about luxurious packages along with its great deals. This is assisting them in
attracting more and more visitors towards their organisation.
Strategies for establishing new business: For increasing their sales Virgin Atlantic is
joining hands with many other organisation like airlines, hotels, tourism companies while
establishing its business. This is helping them in providing better accommodation to its clients or
visitors (Capriello and et. al., 2013).
Strategies for increasing sales: For grabbing or pulling attention of maximum number of
people they are they are offering discounts on certain destinations like one ticket with booking of
two and concessions on tickets for children are the effective strategies which they are following.
SWOT analysis of Virgin Atlantic:
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Strengths: Virgin Atlantic works for providing better services to its customers and for
this they are implementing new and innovative ideas for influencing maximum number of
people. Along with this, joint ventures have helped them in increasing their sales and
profitability (Lundberg, Fredman and Wall-Reinius, 2014).
Weaknesses: As the organisation has established their business in many places so
following their rules and regulations is creating some kind of problem. According to the past few
years because the owner of the company has hidden some of the details of its shares, because of
which in some places their airlines have been restricted.
Opportunities: In context with, Virgin Atlantic they are taking forward step for goodwill
of the company and most of the other ventures are collaborating with them as a result they are
getting opportunities in expanding their business in an efficiently.
Threats: In the sector of travel and tourism, level of competition is increasing as a result
it is creating problem for entrepreneur in taking initiative so as to increase their business
operations (Hjalager, 2010).
TASK 3
3.1 Source of finance and support available in travel and tourism sector
Finance is one of the crucial element that must be considered by companies if they want
to enhance their business operations. Finance and marketing department can be linked with one
another as it firm is having sufficient amount of money than they can easily promote their
activities so as to grab attention of maximum number of people. In market there are various
sources through which organisation can raise funds for flourishing their activities. This will help
them in making new developments or re-framing strategies for attracting travellers. Travel and
tourism conduct various activities through which they can generate adequate amount of funds.
Investors are the basic source from which company can gain profits and for this it is necessary
that entrepreneur makes appropriate strategies by which they can influence Stakeholders so as to
invest some amount of money in their business in order to get effective returns (Morrison,
Carlsen and Weber, 2010). Other sources can be from external i.e. bank or funding institutions.
Some of the sources of financing are mentioned below:
Investors: They are the biggest source of providing funds to companies and entrepreneur
can avail them by showing them financial statements so as to aware investors about their plans.
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Along with this, if organisation shows them money that is invested in previous years than it will
give an overview about how mush funds are required by the firms so as to improve their business
operations.
Product development:These are the organisation that are from outside sources. It ensures
that whatever money invested by investors are getting effective returns in speculated time frame.
In context with Virgin Airline they have incorporated other facilities and with the help of this
they have providing different offers to its customers. As a result it is helping them in increasing
their revenues in an effective manner (Forno and Garibaldi, 2015).
Bank and other institutions: They are considered as one of the basic financial
institutions that provides funds in the form of loans or interests which company can avail for
certain time period. Thus, this can be used by entrepreneurs for enhancing or implementing new
technologies in order to attract large number of customers.
Therefore, for increasing their business activities Virgin Atlantic is taking funds form all
these sectors as a result through this all the operations are done in an appropriate way.
3.2 Developing and justifying the potential for success of an enterprise
With the help of SWOT analysis company will get to know about the potential targets
which they can achieve through available resources that are with them. Company is utilising all
the marketing strategies like Marketing mix that includes price, product, promotion and place
and it is helping them in identifying the market scenario of a market area (Biggs, Hall and
Stoeckl, 2012). Therefore, marketing analysis assist an organisation in making appropriate
strategies so as to gain competitive advancement. Thus, some of the potential elements through
which all the objectives can be met are mentioned below:
Analyse of the market: In case of Virgin Atlantic they have captures a market share of
approximately 1.76 billion. With the change in course of time travel and tourism sector has
changed drastically because of which company has gained opportunity in implementing new and
innovative ideas in their business. Other than this, while expanding their business operations
they are going through the market are form where they can get maximum profits. As a result an
increase in their market shares and values can be seen (Yang, Ryan and Zhang, 2013).
Market Approach: Market is divided on the basis of certain segments like age, taste,
choices, preferences etc., therefore for pulling attention of maximum number of people they are
utilising different strategies one of them is explained below:
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Marketing Mix: This is used by most of the companies for promoting activities in the market
area further points are explained beneath:
Product: In context with Virgin Atlantic, they have implemented new and innovative
offers so as to increase their sales and profitability. Ticket booking through online and offline
process is helping them in generating more and more revenues.
Price: Company has fixed their prices according to different classes i.e. economy and
business. Demographic regions are or place of vacations are also considered while fixing up the
cost price of any vacations.
Place: Virgin Atlantic has opened their offices in different laces form where travellers
can book their tickets. They are also giving some exiting offers according to the tourist
destinations (Mshenga and et. al., 2010).
Promotion: Company is using different mediums for promoting their activities such as
social networking sites, newspapers, magazines etc., as a result it is helping them in garbing
attention of large number of people.
3.3 Persuasive business start-up plan
As entrepreneur are new to business environment so it is important for them to make a
business pan before establishing their enterprise. They are required to make an effective
strategies or planning which they can follow in their future proceedings. Sector of travel and
tourism in past 15 years they have grown and made up them their mark by contributing some of
their funds in the economy of the nation. Around 30% of GDP depends on this industry so
entrepreneur must make objectives by considering all the elements that are present at the market
area (Hallak, Brown and Lindsay, 2012). Below some of the points are given for making an
effective business plan:
Objectives: Before starting of the business it is necessary that company has a proper
objective which will guide them in achieving their set targets. In context with Virgin Atlantic,
their main aim is to establish their business not only in terms of airlines but related to other fields
as well such as accommodations, tourism, sightseeing etc., For this, they are working in joint
ventures with other organisation and it is helping them in increasing their shares in market area.
Market analysis: Company is majorly focussing on expanding their business in different
areas and for this they are going through proper evaluation of places. Different marketing
approaches are helping them in doing the same. Organisation is using PESTEL analysis and
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Porters Five force model for analysing the market areas of a particular place. Through this, firm
is getting an opportunity of covering around 17.6 billion shares of tourism marketing
(Komppula, 2014).
Strategy: Entrepreneur must have various skills while developing a business plan like
managerial skills, interpersonal skills etc., so that he/she can influence other people's mind. This
will assist them in making appropriate strategies so as to understand how company can achieve
their set targets. Along with this, an entrepreneur should be innovative in terms of implementing
new ideas. With the purpose of meeting all the objectives entrepreneur along with his/her co-
workers can discusses about thoughts for running their business effectively.
Differentiation: This concept is very important for making company unique from others
it will help them in gaining competitive advancement. For example: at the time of booking they
are offering flexible charges in which company is giving relaxation to children who are below
the age of 5. Other than this, Virgin Atlantic is providing facility of “Cash at the time of
delivery” if traveller couldn't pay at the time of online booking (Xiang, Magnini and
Fesenmaier, 2015).
CONCLUSION
From the above report it has been concluded that, to become a successful entrepreneur it
is essential to make strategies in order to attain all the set targets and objectives in speculated
time frame. Self evaluation in order to know the strengths and weaknesses will assist an
individual to know where are the sectors in which more work needs to be done. Along with with
for collecting sufficient funds all the resources company is taking the same from sources like
investors, financial institutions, product development etc. Therefore, having an effective business
plan will assist an entrepreneur in establishing his/her business effectively.
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REFERENCES
Books and Journals
Hallak, R., Brown, G. and Lindsay, N. J., 2012. The Place Identity–Performance relationship
among tourism entrepreneurs: A structural equation modelling analysis. Tourism
Management. 33(1). pp.143-154.
Komppula, R., 2014. The role of individual entrepreneurs in the development of competitiveness
for a rural tourism destination–A case study. Tourism Management. 40. pp.361-371.
Xiang, Z., Magnini, V. P. and Fesenmaier, D. R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services. 22. pp.244-249.
Marchant, B. and Mottiar, Z., 2011. Understanding lifestyle entrepreneurs and digging beneath
the issue of profits: Profiling surf tourism lifestyle entrepreneurs in Ireland. Tourism
Planning & Development. 8(2). pp.171-183.
Ramukumba, T and et. al., 2012. Analysis of local economic development (LED) initiated
partnership and support services for emerging tourism entrepreneurs in George
municipality, Western Cape Province, RSA. Tourism Management Perspectives. 2.
pp.7-12.
Molz, J. G., 2012. Travel connections: Tourism, technology, and togetherness in a mobile world.
Routledge.
Denicolai, S., Cioccarelli, G. and Zucchella, A., 2010. Resource-based local development and
networked core-competencies for tourism excellence. Tourism management. 31(2).
pp.260-266.
Kayar, Ç. H. and Kozak, N., 2010. Measuring destination competitiveness: an application of the
travel and tourism competitiveness index (2007). Journal of Hospitality Marketing &
Management. 19(3). pp.203-216.
Capriello, A and et. al., 2013. Farm tourism experiences in travel reviews: A cross-comparison
of three alternative methods for data analysis. Journal of Business Research. 66(6).
pp.778-785.
Lundberg, C., Fredman, P. and Wall-Reinius, S., 2014. Going for the green? The role of money
among nature-based tourism entrepreneurs. Current Issues in Tourism. 17(4). pp.373-
380.
Hjalager, A. M., 2010. A review of innovation research in tourism. Tourism management. 31(1).
pp.1-12.
Morrison, A., Carlsen, J. and Weber, P., 2010. Small tourism business research change and
evolution. International Journal of Tourism Research. 12(6). pp.739-749.
Forno, F. and Garibaldi, R., 2015. Sharing economy in travel and tourism: The case of home-
swapping in Italy. Journal of Quality Assurance in Hospitality & Tourism. 16(2).
pp.202-220.
Biggs, D., Hall, C. M. and Stoeckl, N., 2012. The resilience of formal and informal tourism
enterprises to disasters: reef tourism in Phuket, Thailand. Journal of Sustainable
Tourism. 20(5). pp.645-665.
Yang, J., Ryan, C. and Zhang, L., 2013. Social conflict in communities impacted by tourism.
Tourism Management. 35. pp.82-93.
Mshenga, P. M and et. al., 2010. The contribution of tourism to micro and small enterprise
growth. Tourism Economics. 16(4). pp.953-964.
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