Travel and Tourism Entrepreneurship: Skills, Finance, and Strategy

This report delves into the multifaceted world of travel and tourism entrepreneurship, exploring the essential skills and traits necessary for success in this dynamic industry. It begins by identifying and discussing key entrepreneurial characteristics such as self-confidence, open-mindedness, innovation, and communication skills, followed by a self-assessment of these traits. The report then analyzes business development strategies, including a case study of Virgin Atlantic, highlighting factors that contributed to its success. It also evaluates various sources of finance and support available to entrepreneurs in the tourism sector, such as banks and financial institutions. Finally, the report culminates in the development of a business plan, incorporating market and cash flow analysis, to provide a comprehensive guide for aspiring entrepreneurs. The report leverages theories and techniques such as leadership and creative thinking, offering a practical understanding of the entrepreneurial process in travel and tourism.

Travel and Tourism
Entrepreneur

TABLE OF CONTENTS
INTRODUCTION:..........................................................................................................................1
TASK 1............................................................................................................................................1
a) Discuss the entrepreneurial traits and skills required to be a successful travel and tourism
entrepreneur................................................................................................................................1
b) Produce a self-appraisal of entrepreneurial traits and skills that you may possess and
identify the strengths and weaknesses.........................................................................................2
M1 Identify and evaluate sources...............................................................................................4
TASK 2............................................................................................................................................5
a) Analyse business development strategy and the entrepreneurial process of successful
entrepreneur................................................................................................................................5
2.2 Factors that have led to success of enterprise.......................................................................5
M2 Apply theories and techniques..............................................................................................6
TASK 3............................................................................................................................................6
a) Evaluate and discuss the sources of finance and support available........................................6
b) Develop a business plan with a market assessment, business analysis and cash-flow
analysis........................................................................................................................................7
c) Present a persuasive business plan for the Travel and Tourism start-up project....................9
M3 communicate findings........................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION:
Tourism sector is one of the largest growing industries. It is due to the increase in range
of services and facilities that are provided by tour operators both globally as well as locally.
Many people have attracted towards building career in this industry because of its rapid growth
and development (Carson, Carson and Eimermann, 2018) However, to build career in this, high
level of skills and qualities are required. Besides this, there are several areas in which
entrepreneurship can be carried out such as travel, accommodation, hotel, etc. Moreover, funds
are easily available from bands and other resources. This makes it easy for people to start their
career in this field. This report will describe the skills and traits that are required to become an
entrepreneur. Also, how a business development plan is developed along with different sources
of finance available will be explained. At last, a business plan is developed by doing market and
cash flow analysis.
TASK 1
a) Discuss the entrepreneurial traits and skills required to be a successful travel and tourism
entrepreneur
To become an entrepreneur in any field, a person must possess effective and proper skills
and traits. These skills help the person to become a successful entrepreneur (Mottiar and Boluk,
2017) In travel and tourism sector, it is essential that person must be open minded. This will help
him to take proper decisions. Apart from that, there are many other qualities required. These are
as follows:-
Self-confidence- It is the most important trait that individuals must possess. Being a self-
confident person will help in bringing change in society. Also, it will help person to pursue
towards his goals.
Open minded- An entrepreneur in tourism sector must be open minded. It helps in taking
an effective decision. Also, it helps in expanding services in wide areas. Moreover, an open
minded person is able to think positively on how to grow and develop business.
Innovative- It is necessary for an individual to bring frequent changes in business services. It is
because; the tourism sector environment varies very often (Sheldon, Pollock and Daniele, 2017)

So, changes must be made in order to cope up with the same. Also, an innovative entrepreneur
will look on how things can be modified.
Communication skills – This is the most crucial skill required in tourism business.
Having an excellent communication skill will help in selling of products and services.
Furthermore, it helps in building strong customer relations.
Determination power- Entrepreneur must possess strong will- power in order to survive
in the critical circumstances. Also, failure and defats are part of business. So, individuals should
be able to take effective decisions in order to pursue their goals (Nikraftar and Hosseini, 2016)
The will- power should not be affected and focus must be on goals.
Strong ethics – It is also a trait that is required to become a successful entrepreneur. It
means that individual should follow specific rules and regulations. They must perform their tasks
and duties in an effective way. Also, if required, they must work on holidays to achieve their
goals.
b) Produce a self-appraisal of entrepreneurial traits and skills that you may possess and identify
the strengths and weaknesses
Self assessment
Skill / trait Rating on scale from 1 to 10 Evidence
Communication skills 9 I am having a good
communication skills. I
read articles and newspaper
regrading any change in
tourism sector. If needed I
personally communicate
with customer to solve
their problems. I have
communicated with foreign
customers who do not

speak English.
Innovative 7 I have applied innovative
ideas in business. I have
also mad changes in
services in interacting with
customers. This has helped
me to analyse loop wholes
so that it can be solved.
Self confidence 8 I am confident enough that
decision take by me are
effective and will help to
achieve my goals.
Open minded 6 I always think outside the
box. This helps me in
developing products and
services.
SWOT analysis
Strengths Motivation - This is my key strength. I
always motivate myself to achieve my
goals. I am always curious in exploring
new place and getting information
about that the same. This curiosity
motivates and helps me in running the
enterprise successfully. Good relations- I can easily make
Weaknesses
 Managing finance – I am not able to
manage the finance in business. This
affects the balance sheet of my
business. It causes problems in
preparing the budgets for packages.
 Risk bearing - I am always having a
fear of suffering from loss. This quality
restricts me to take high risk in

healthy relations with others. This helps
me to interact with customers and treat
them well. It is the reason why I am
able to retain them.
 Good in organising and planning – I
am very good in making plans and
organising tours. I analyse information
about an area and then develop plan
and activities of tour accordingly. This
efficiency helps me in developing the
attractive tour packages.
business. I am also not a good risk
bearer.
 Decision making - Sometimes, I am
not able to take effective decisions.
This is because; I am not able to
evaluate the situations. This affects my
performance as well as leadership.
Opportunities
I can connect with agents to expand my
business by communicating with them.
Threats
There is a lot of competition in tourism
industry. so I may not be able to communicate
with people.
M1 Identify and evaluate sources
There are various approaches that can be used. It is described as follows:
Internet- this is a major source through which entrepreneurial skills can be gained. It will help
me in learning various techniques that will help me in improving my knowledge.
Books- by reading books I can gain knowledge about leadership, communication skills, etc. it
will also help me in understand how to handle and manage situation in effective manner.
Training centres- I can get training of learning different skills. this will help me in career
building.

TASK 2
a) Analyse business development strategy and the entrepreneurial process of successful
entrepreneur
An entrepreneur becomes successful only when he or she has achieved goals and
objectives. Also, he or she is called successful when business started is operating in various areas
and generating more profits (Carson, Carson and Eimermann, 2018). In travel and tourism
sector there are many entrepreneurs who are successful operating in different areas. One of
example is Virgin Atlantic. It was founded by Richard Brandson. He is a successful entrepreneur
and possess all skills and qualities that are as follows :-
Innovative – He was very innovative. This can be said that he started his business project with
an innovative idea. Also, he shared his ideas with employees so that effective decision can be
taken. This was good for business as it helped in growth. He always provided new offers so that
more customers can be attracted.
Bonding – He was expert in developing good relations with others. He treated all employees
equally. This created a better working environment in business (Mottiar and Boluk, 2017) With
this his employees also supported him and considered as great advisor.
A good leader- He was having a great quality of leader that helped him to lead his business and
employees. He acted as leader and guide employees to achieve their targets. This overall helped
his business to attain goals
Obsession for work – Whenever he worked he only focused on his goals. This helped him to
work effectively and taking better decisions in business. He enjoyed his work and never took
stress while working. This was beneficial for him to take any challenge and solve it.
From the above discussion it can be concluded that the main factor that lead to success of
Virgin Atlantic was collaborating working and developing strategies. This benefited Virgin
Atlantic to develop and grow in the market very rapidly (Sheldon, Pollock and Daniele, 2017)
2.2 Factors that have led to success of enterprise
Besides this, there were may factors involved in success of Virgin Atlantic these are as follows :-

Promotional strategy- Virgin Atlantic follows various promotional strategies that helps them to
attract new customers. Company provides different offers and deals to different customers.
Along with this, firm provides various tour packages to people that varies from season to season.
Increasing sales – Virgin Atlantic provides various offers to customers to increase sales. For
example- they provide buy one get one ticket to customers, discounts of two tickets, etc. It has
helped them to increase sales and generate huge revenue.
New ventures – Virgin Atlantic have joined hands with new ventures. This has increased their
range of providing service. Company are now operating in areas such as hotels, airlines, etc.
Virgin Atlantic has also joined venture with Singapore and Malaysian airlines (Nikraftar and
Hosseini, 2016)
M2 Apply theories and techniques
Leadership – this technique has helped Richard in leading a team and achieving goals and
objectives. It gave direction to employees about where they are moving.
Creative thinking – Richard allowed his employees to work in creative way. through this, they
were able to think outside the box. It benefited in developing new services and products that
attracted a lot of customers.
Focus – Richard maintained focus on his work. He developed strategies and worked upon it. this
was useful in time management and completion of activities.
TASK 3
a) Evaluate and discuss the sources of finance and support available
In order to become an entrepreneur in tourism sector, enough funds are required for it. It
is a business in which long term investment are needed to develop products and services. Also, to
keep pace with changing market situations and expanding services at large scale, funds are
required (Hingtgen, Kline and McGehee, 2015) There are many sources through which
financial support for entrepreneur can be available that are analysed below :-
Banks- It is the most common source through which funds are available. For this person has to
deposit some security against the loan. Banks can be private or public. An individual can easily
get loan from it. Apart from this, a proper and legal procedure has to be followed in order to get

finance from banks. Moreover, complex procedure has to followed in getting loan. Furthermore,
it takes a lot of time in completing the overall process.
Financial institutes – They are similar to banks but differs in their services and interest rate.
They often provide finance at high interest rate but does nor keep that much security as bank.
Also, the process of getting finance is not so complex as banks.
Own saving – This investment is made when an individual is having a large amount of personal
saving. It is most often investment made by person to become an entrepreneur (Hallak, Assaker
and Lee, 2015)
Friends and relatives- they are the last option through which investment can be brought.
Generally, it is a risk free option but it restricts person in getting finance.
Thus, an entrepreneur can get finance from all these sources. It will enable them to
execute the business plan effectively.
b) Develop a business plan with a market assessment, business analysis and cash-flow analysis
A business plan is developed by analysing several factors such as strength, weakness, etc.
besides this, it is necessary to analyse the market so that an effective product can be developed.
However, market assessment is used to determine 4 P's. While developing business plan, cash
flow analysis is done (Jeyacheya and Hampton, 2016) It helps in analysing the financial need of
business. Also, it describes how much profit it will generate, what expenses will be incur, etc.
accordingly product is developed and price is determined.
Analyse the market- Virgin Atlantic can analyse the market so that opportunities can be found
out. It will help company to grab those so that it can expand services. They can offer new
products and services to people. With this Virgin Atlantic will be able to increase their customer
base and earn more profits. The financial position of company will be improved. Apart from this,
it will enable company to identify threats so that appropriate measures can be taken to improve
them.
Marketing mix - It is a concept that can be used by Virgin Atlantic to offer products to
customers in effective way (Scott, Hall and Gössling, 2016) Generally, it is marketing mix in

which 4 P's are defined. Therefore, Virgin Atlantic can follow them in their business plan. It will
help in execution of business plan. It is described as below :-
Product – It refers to features or new ideas that can be used in travel and tourism sector. Product
can be developed by identifying demand of people. Moreover, online facility can be provided by
company. This will result in increasing range of products and services.
Place – A place is a location or area where product is sold or are available to customers. The area
must be suitable enough so that it is within the reach of people. Company can offer product at
different places. They can use website for selling product or services. Apart from this, officers
can be set up in the most populated area.
Price – company can charge different prices of tickets from different customers. It will be
categorised into business and economy class (Kline, Boluk and Shah, 2017). Besides this,
packages can be based on demographic segment. It will contain age, gender, income level, etc.
Promotion – for promotion of products different techniques can be used. It will help in making
customer aware about new products and services. For this company can promote it by giving
advertisement in newspapers, magazines, etc. it can also be promoted by public relations, sales
promotion, etc. along with this, company can use social media. It will help in marketing at global
level.
Cash flow analysis - This analysis is done to identify the inflow and outflow of cash. Business
do this to find out their financial position in the market. The main purpose is to identify from
where cash will be generated, where it will be incurred, etc. It is based in fixed accounting period
in which balance sheet and income statements are prepared. The cash flow analysis is describes
below :-

c) Present a persuasive business plan for the Travel and Tourism start-up project
A business follows and develop different strategies and approaches in order to achieve its
goals and objectives. In recent times travel and tourism sector is growing rapidly. There has been
many changes that has occurred in this industry. It has affected overall growth. So in order to
keep pace with those changes companies needs to develop different strategies. These are
implemented according to changes in order to minimise the impact and maintaining stability in

growth. For this a business plan can be very helpful. A business plan can be effectively
developed by analysing the various factors that are as follows :-
Aim- To provide new services and tour packages to middle class people at low cost.
Objective-
 Company can expand their services in hotels and tourism sector. This can be done by
collaborating or merging with other companies.
 To increase markets share in tourism sector by 15%.
Industry analysis – After determining objectives, next approach that can be used by Virgin
Atlantic is to analyse the market. This can be done by doing PESTEL and porter five force
model. This will help in analysing the overall market condition. By this company can develop
strategies accordingly.
Political – in many countries government has developed strict rules and regulations that has
adversely affected tourism industry. moreover, frequent change in laws has restricted companies
to expand their business.
Economical – people prefer to go to countries where services are cheap. Tourism industry has
been affected by economical factor.
Social – the society contributes in tourism industry to a great extent. People visit countries to
gain knowledge about culture, community, etc.
Legal – in tourism sector many businesses are been regulated and governed by government. So,
they develop laws and regulations which has to be followed.
Technological – in recent time there has been constant development of services. also, companies
are solving customers problems in quick time with help of technological tools.
Segmentation targeting and positioning
Segmentation- the virgin Atlantic can segment market on basis of country and market condition.
Also, services will be provided by segmenting market on income level of people.