Financial Management's Influence on Tourism: MyTravel Group Analysis

This research project investigates the impact of financial management on the growth and development of the tourism industry, with a specific focus on MyTravel Group, a UK-based package holiday company. The report begins with an introduction to the tourism sector's significance in economic development and the role of financial management in business success. Task 1 outlines the research project's specifications, objectives, and the factors influencing the study's selection, along with a critical review of relevant literature. Task 2 focuses on matching resources to research questions and describes the research investigation's procedures, including qualitative methods and a questionnaire for data collection. Task 3 covers research evaluation techniques, analysis of results, and recommendations. The study aims to determine how effective financial management contributes to MyTravel Group's growth by examining key aspects such as financial planning, resource allocation, and market competitiveness. The findings highlight the crucial role of finance in supporting operational efficiency, enhancing profitability, and mitigating risks within the competitive landscape of the tourism industry.

Research Project

Table of Contents
TITLE – ..........................................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Research project and outline its specifications.....................................................................1
1.2 Factors that contribute in selection of research project.........................................................2
1.3 Critical review.......................................................................................................................2
1.4 Research project specification...............................................................................................4
1.5 Appropriate plan and procedures for agreed research specification.....................................4
TASK 2............................................................................................................................................4
2.1 Match resources to hypothesis and question of research......................................................4
2.2 Research investigation as per the agreed procedures and specifications..............................5
2.3 Record and collect relevant data...........................................................................................5
TASK 3............................................................................................................................................6
3.1 Techniques of research evaluation........................................................................................6
3.2 Analysis of results in original research specification............................................................7
3.3 Recommendations to research to link it with research findings.........................................13
TASK 4..........................................................................................................................................14
Covered in PPT.........................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

TITLE –
To determine the impact of financial management on growth and development of tourism
industry. A case study on MyTravel Group.
INTRODUCTION
Travel and tourism is known as one of the fastest growing industries of the world. It has a
vital role in the economic development of a country. There is required lot of efforts and strengths
in order to attract domestic and foreign visitors to visit the country's spectaculars, especially the
Olympic Games 2012, hence, the UK government is dedicated to engage even more visitors and
gain more profits. Along with this, tourism is known affair for human life, which involves vast
dimensions and eventually supports economic and social growth (Buhalis and Darcy, 2011). It
has a worldwide has experienced by having phenomenal growth. It is assessed that more than
600 million people travel per year annually. However, tourism industry of UK generates
revenues of about half a trillion dollars a year, and averaging five percent annual growth. The
present coursework is based upon MyTravel Group; its a package holiday company located in
UK. The travelling agency was founded in 1972 and its main brands are – Aspro, Airtours,
Direct Holidays, Manos and so on.
The present research project is based upon the importance of financial management on
successful implementation of business operations in travel and tourism industry. For this
purpose, the researcher has gathered information in this perspective from the views of different
authors.
TASK 1
1.1 Research project and outline its specifications
The research is conducted in order to describe the impact of financial management in
growth and advancement of travelling industry. It is essential for every business association to
keep enough capital and sources of funds so as to do all working activities in the best possible
manner. Financial management settles on a sound monetary choice in the business concern. A
financial decision will influence the whole business activity of the worry, since there is an
immediate association with different division capacities, for example, promoting, creation work
force, and so forth (Choi and Turk, 2011). The travelling agency, i.e. Mytravel company owns
has 700 tour retail shops, ownership of 800 aircraft, 81 hotels and resorts which are managed by
a workforce of 15000+ employees. The worldwide customer base of the company is 5.7 million

and has an estimated market capitalisation of over £1.43 Billion GBP. The vision statement of
the company is to be world's best travel and tourism company with that people want travel,
invest in and work in. for accomplishing this, the firm is to work while maintaining its
independence and steering its own commercial course.
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Research aim: To determine the impact of financial management on growth and
development of tourism industry. A case study on MyTravel Group.
Research Objectives
 To identify the importance of financial management for a business association.
 To find out the role of tourism industry in economic development.
 To ascertain the impact of effective financial management on growth of MyTravel group.
1.2 Factors that contribute in selection of research project
There are different factors which can influence research activities and its outcomes. The
prime aim of this study is to ascertain the impact of financial management in growth and success
of travel and tourism industry. MyTravel Group is a worldwide tour operator which organise
several tour packages for customers. In order to get proper understanding on this topic, certain
questions are formed to resolve problem statement. For this, data collections methods are being
used this to investigate the study in better manner (Evans, Stonehouse and Campbell, 2012).
1.3 Critical review
It is one of the most crucial part of research project which signifies various viewpoints of
authors upon specific area of concern. Literature review helps investigator to gather information
as per the topic of entire study. Generally, its a source of getting information through secondary
data.
Significance of financial management for a corporate association
According to Gibson, Kaplanidou and Kang, (2012) the term finance is know as
lifeblood for every corporate association, it needs to attain the requirements of business
perspectives. Management is concern how to manage adequate finance so as to smoothly running
of all working activities, capital also assists to carefully accomplish firm's goals and objectives.
The main role of finance is to promote as well as mobilizing savings which supports to earn
maximum profitability and increasing wealth. Financial management supports to recognise
financial requirement of businesses and leads an efficient financial planning thus to attain
business goals and objectives. It comprises with acquisition of finance by determine various
sources at minimal costs. Optimal utilisation and allocation of funds assist in booming up
operational efficiency of business perspective.
In context of, MyTravel Group, financial management is liable for enhancing wealth of
companies by having an aim to accomplish maximum profit margins and productivity. Efficient
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management of financial sources aids to mobilise and promote corporate savings. Therefore, it
can be said that firms cannot function without proper financial management.
Role of travel and tourism industry in economic development of UK
The travel and tourism industry of UK is outperformed in country's economy. Britain has
fifth largest tourism industry in the world. It is a major component of the UK economy
generating £114bn per annum and supporting 2.65m jobs. According to John and Susan, (2015)
it includes travel undertaken for leisure, for business and to visit friends and relatives and
comprises some 200,000 enterprises – 80% of which are SMEs. Britain is vast and diverse
nation, due to its glorious traditions as well as affluent cultural heritage, Britain always focus to
offer something which is associated with tourism. Its splendid or magnificent monuments draws
wide range of tourists across the world. The overall contribution of tourism industry is 5.68% of
the national GDP rate as well as and 8.84% of the total employment. In London,almost 13.72
million foreign visitors which generated US$ 100 billion in 2008 and is expected to increase to
US$ 275.5 billion 2018 at a 12.4% annual growth rate.
Influence of Financial management on growth and development of MyTravel Group
With the viewpoint of Koutra and Edwards, (2012) finance is crucial function of every
business organisation; it is not only a good indicator but also holds firm's growth and success.
Finance has its own traits or characteristics which can affect operations in diverse manner and
boost up their efficiency. An effective and efficient management of finance encompasses with
various tasks which enables a firm to obtain capital for success, maximise potential income,
allocate resources as well as evaluate results by accounting statements. In competitive
environment, it is necessary for business associations to keep enough availability of finance so as
to all tasks and activities in a systematic manner.
When a firm is financially strong then it would be able to invest in various project; it
results high returns on investments which increases profitability and market share of the
company. High working capital also helps travel and tourism businesses to prevent risks and
uncertainties. An organisation with high amount of debt can become over-leveraged, it implies it
has high fixed costs linked with financing. As same as keeping financing to a minimum can
greatly strengthen the financial health of a company. Therefore it can be said that, an effective
financial management also helps in improvising quality of products cause it enables firm to
implement new and innovative tools of production so as to gain high competitive edge.
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1.4 Research project specification
Information collected by the researcher with an aim to arrive better outcomes has a
fundamental role in competition of entire study. There are two main sources of data collection,
such as – primary and secondary. In which primary sources of data collections helps to get up to
date and new information which is based upon research theme. On the other hand, secondary
method of data collection helps states to that information which is already collected for another
research and also helps in carrying out a new study as well (Ma and Hassink, 2014). For
completition of this research, both methods are used. A questionnaire will be made by
considering 50 people for data evaluation.
1.5 Appropriate plan and procedures for agreed research specification
In order to accomplish all research activities and tasks, it is necessary for investigator to
create an appropriate plan or procedure thus to save time and cost. The plan contains different
activities with their time frame thus to do all activities in an appropriate manner. Following is
defined certain stages to process a research project: -
 Formulation of research aim & objectives – Its an initial step of every research project
which provide direction to researcher on which area study is going to be completed.
 Literature review – It involves numerous articles, journals, books and websites to gather
and evaluate information.
 Research methodology – To find out numerous methods for completion of research
project.
 Data collection – Collect relevant data and information from specific group of persons.
 Data analysis – Analyse results or interpret them
 Conclusion & recommendations – At last, researcher gives certain suggestions to modify
the study in order to arrive better outcome.
TASK 2
2.1 Match resources to hypothesis and question of research
Research questions
 Q1. What is the significance of financial management for a corporate association?
 Q2. What is the role of travel and tourism industry in economic development of UK?
 Q3. How financial management affect growth and development of MyTravel Group.
 Q4. Describe the structure of Britain Tourism?
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 Q5. What are the ways by which tourism companies can enrich their functional area?
2.2 Research investigation as per the agreed procedures and specifications
While carrying out a research project, several methodologies are being used so as to
arrive at better conclusion. There are two main methods of research, such as – qualitative and
quantitative. In which, qualitative method is acquired to recognise attitude and behaviour of
people on particular topic; there is needed no statistical information. On the other hand,
quantitative research is based upon numerous figures and further numerical information as it is
beneficial for researcher to implement experimental techniques (Morrison, 2013). For
competition of this research project, there is selected qualitative method so as to attain qualitative
information and attain research aim and objectives.
2.3 Record and collect relevant data
Questionnaire
Name
Age
Gender
Q1. Since how many years you ate connected with MyTravel Group?
A. Last 6 six months
B. Since one year
C. More than a year ago
Q2. Do you think that systematic management of finance is liable for growth and
development of business associations?
A. Yes
B. No
Q3. What is the main benefits of financial management?
A. Brings economic growth and development.
B. Enables to take better decisions
C. Ensure financial stability
Q4. Do you think that MyTravel Group having sufficient amount of capital to manage its
operations?
A. Agree
B. disagree
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C. Can't say
Q5. What is importance of financial management in travel and tourism industry?
A. Improve market share
B. Obtaining maximum competitive edge
C. Provide better quality of services
Q6. Is growth and success of Tourism industry affects economic development of UK?
A. Yes.
B. No.
Q7. What are the ways through which MyTravel can enlarge its functional areas?
A. Improving quality of services
B. Increasing product line
C. Applying innovative tools in production
Q8. Any Recommendations to achieve high competitive advantages at marketplace.
TASK 3
3.1 Techniques of research evaluation
Following is defined different techniques of research evaluation, such as - Research design – It helps in examining different alternatives of research and then select
the suitable method to resolve research problem. There are two main types of research
design, such as – descriptive and exploratory. In which, the assignment is based upon
descriptive research design as it provides a brief discussion upon research topic and
simultaneously it also helps in assessing research problem as well. Research approaches – It defines the main procedure that a researcher needs to follow
thus to carry out an effective study. There are two main research approaches, such as –
inductive and deductive. In which deductive research signifies a new theory from
gathered information whereas inductive research helps investigator to evaluate various
theory (Murphy, 2013). For this study, there is used inductive research approach in
accomplishing better outcomes. Data sampling – There is required for researcher to identify a sample for carrying out
research so as to arrive adequate outcomes and draw a meaningful conclusion.
Probability and non-probability are two methods of sampling. In which probabilistic
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method is chosen for competition of this study. Under this, 50 respondents are considered
who are regular clients of MyTravel group.
 Ethical consideration – It is essential for researcher to follow all ethics or principles
while getting information. Basically, ethics decides a differentiation between what is
wrong and what is right. It resolves all issues linked with study and completion of
working activities.
3.2 Analysis of results in original research specification
Theme 1: Customers' relationship of the company
Q1. Since how many years you are connected
with MyTravel Group?
Frequency
A. Last 6 six months 5
B. Since one year 20
C. More than a year ago 25
Interpretation: - As per the above diagram, it get assessed that people are using products
and services of MyTravel Group since many time. With the opinion of 25 respondents, they say
that they are connected with the company more than a year ago whereas 20 customers stated that
they are using its services since one year. And remaining 5 says that they are linked with the firm
from past six months.
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A. Last 6 six months
B. Since one year
C. More than a year ago
0
5
10
15
20
25
Column B

Theme 2: Managing finance for growth and development of business organisations
Q2. Do you think that systematic management
of finance is helpful in growth and
development of business associations?
A. Yes 45
B. No 5
Interpretation – The above diagram stated that efficient and proper management of
financial resources helps in increasing business viability and popularity across marketplace. It
helps management how to cope up with financial issues as per the opinion of 45 respondents.
Apart from this, 5 participants says that company needs to make modifications in other business
activities also for its market growth.
Theme 3: Advantages of financial management
Q3. What is the main benefits of financial
management?
A. Brings economic growth and development. 35
B. Enables to take better decisions 10
9
45
5
A. Yes
B. No

C. Ensure financial stability 5
Interpretation: According to this graphical presentation, it is analysed that 35
respondents are saying financial management brings economic growth of business associations
in respect of raising its working capital. Apart from this, 10 respondents stated that it enables
business to make imperative decisions and gain high competitive edge. And remaining 5 says
that financial management ensure potential financial stability of firms.
Theme 4: Financial capability of MyTravel Group
Q4. Do you think that MyTravel Group having
sufficient amount of capital to manage its
operations?
A. Agree 35
B. disagree 3
C. Can't say 12
10
A. Brings economic growth and development.
B. Enables to take better decisions
C. Ensure financial stability
0
5
10
15
20
25
30
35
35
10
5
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