Analyzing Entrepreneurial Strategies in Travel and Tourism Sector

This report delves into the realm of travel and tourism entrepreneurship, exploring the essential skills and strategies required for success in the industry. It begins by defining entrepreneurship within this sector and outlining crucial interpersonal, leadership, and competitive skills. The report then presents a self-appraisal of entrepreneurial traits, identifying strengths such as creativity, interpersonal skills, and motivation, while also acknowledging weaknesses like leadership and financial skills, and proposing strategies for improvement. Furthermore, the report analyzes successful entrepreneurial strategies, using Richard Branson's Virgin Atlantic as a case study, examining his promotional and marketing tactics and the factors contributing to his success. It also explores various sources of finance available for start-ups, including personal savings, bank loans, angel investors, and crowdfunding. Finally, the report culminates in the development of a business plan, encompassing market assessment and a persuasive start-up plan for a travel and tourism venture.

Travel and Tourism
Entrepreneur

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A) Presenting the entrepreneurial trait and skills for successful travel and tourism entrepreneur
.....................................................................................................................................................1
B) Presenting a self- appraisal of entrepreneurial traits to identify the strength and weaknesses
.....................................................................................................................................................2
TASK 2............................................................................................................................................3
A) Describing successful entrepreneur's strategy and evaluating factors that led to a success . 3
TASK 3............................................................................................................................................5
A) Presenting the source of finance............................................................................................5
B) Developing a business plan with market assessment.............................................................5
C) Presenting a persuasive business plan for travel and tourism start-up project.......................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Travel and tourism sector contribute the biggest part for the growth of a economy. The
report main aim is to present the strategy of a successful entrepreneur in a travel and tourism
sector. The study is based upon different case scenario and describe the skills which are needed
to become a successful entrepreneur and also identifies strength as well as weaknesses for
development benchmarked for a successful entrepreneur. Report further describe the
development of an entrepreneurial enterprise and also evaluate some factors that help to achieve
success. Moreover, it present sources of finance and develop business plan for an enterprise and
also describe the persuasive business start- up plan for the company.
TASK 1
A) Presenting the entrepreneurial trait and skills for successful travel and tourism entrepreneur
To start a new business, establish and developing it in a travel and tourism industry is
known as entrepreneurship in travel and tourism industry. There are many skills which are
needed for becoming a successful travel and tourism entrepreneur and this are mentioned below:
 Interpersonal skills: Having an interpersonal skills is quite important to have in
entrepreneur. This skills includes communication skills, build relationship with customers
as well as team members. Entrepreneur in a travel and tourism industry should motivate
the employees so that they will attain all defined goals. Having such type of skills will
help to guide the team and employees for the growth of a business (Prebensen, Chen and
Uysal, 2018).
 Discipline: it is the most important skill which an entrepreneur must posses. Discipline
involves focus that further help to solve the problem and setting up a new business in
order to achieve the goals of a company.
 Passion: Passion consider one of the most significant skill which help entrepreneurs to
work very hard with a dedication in order to achieve the business target. If a person has a
passion regarding his own work then it will help to do work with more efficient way.
 Leadership Skill: This is another skills which are required to have in an entrepreneur
and this includes, decision making, solve disputes, motivate their team mates and identify
a problem (Porter, Orams and Lück, 2018). Moreover, a person should have an open
mind and have creativity in his own work that help to complete the work early.
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 Confidence: To make a business successful, it is quite important for an entrepreneur to
have a good level of confidence so that it will further help to raise the efficiency level of
an employee.
 Knowledge: If an entrepreneur is related to travel and tourism sector then it is important
to have a good knowledge regarding their sector. Moreover, if an entrepreneur have
knowledge as well as confidence then it will double the efficiency of a business and
attain all defined goals at early.
 Competitive skill: An entrepreneur must have the competitive skills because this skills
help a person to set up a business in those region where there is a tough competition.
Hence, it is quite necessary to have such skills in an entrepreneur.
 Creativity and open minded: It is another important skill which an entrepreneur should
posses such that entrepreneur should be innovative and creative in order to adopt strategy
that help to make a business more competitive in a market (Rataj and Eriksson, 2018).
Having an open minded approach will further help to generate new ideas in order to
improve the efficiency of a business.
B) Presenting a self- appraisal of entrepreneurial traits to identify the strength and weaknesses
There are so many skills and qualities which an entrepreneur posses and on the other side,
self- appraisal refers to determine the strength as well as weaknesses and I have some skills
which is consider as a strength as well as weaknesses.
Strength:
Creativity and open minded: New ideas, thoughts and creativity towards my work help
me to grow the business towards a success level. As I posses this quality that is actually required
to attract wide range of customers towards a product and having such trait help me to become a
successful leader or entrepreneur in travel and tourism industry.
Interpersonal skills: I also have good communication skills as well as maintain good
relation with customers as well as team mates and this quality in travel and tourism industry is
quite important because the entire process is based upon contacts. Having a social interaction and
maintaining good relation with others help to become a successful entrepreneur.
Motivation: It is consider as a strength for me because this skills is actually helpful to
motivate many people to achieve all defined goals of a company. For example, as I am working
in a travel and tourism sector and have a good knowledge related to work and always curious to
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know more then this quality help me to explore myself and motivates me to learn more and
running a business in next further level of success.
Good in planning skills: As I have a good knowledge related to my work then it will be
helpful to grew business more in an effective way. Therefore, I plan and managed my all thing
well such that I always planning for a trip and organized in well manner so that it will be
memorable for all and this skills help to become a successful entrepreneur.
Weaknesses:
Leadership: I am lacking some qualities of leadership such that I can perform as a part
of a team but individual I cannot and this shows that I am lacking some qualities of a leadership
and as a result, I will not lead a team in better way.
Risk Bearing: I am not able to bear a risk and even I cannot take a decision for the
welfare of a company. That is why I think that this skill is act as a barrier in my success way.
Financial skills: I am also lacking this quality and to run a business it is quite essential to
have a good finance skills and at the time of maintaining financial statement I make wrong entry
and this affect the balance sheet. This shows I am lacking the quality of financial skills.
Strategy for development of benchmarked:
 In order to overcome weakness of leadership skill, I start joining session in order to
enhances some leadership skills and watch videos of famous entrepreneurs.
 To overcome the problem of finance, I start attending classes of accountability and start
solving problems of a business.
 Start communicating with others in order to groom myself and enhances the knowledge
which further help me to overcome many issues.
TASK 2
A) Describing successful entrepreneur's strategy and evaluating factors that led to a success
One of the famous personality in UK, Richard Branson who start his business in travel
and tourism industry through invention of Virgin Atlantic. The person posses many skills such as
he is an innovative person who implement all new ideas and qualities into their workplace. He
also share his all thoughts as well as views to his employees and attract customers (Branson,
2018). Another skill is having a strong bond as well as maintain good relation with their
employees as well as customers and this quality makes Branson a hero. He also posses good
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leadership quality and this lead to set up a brand name of Virgin Atlantic and then establish a
chain in tourism industry.
Development strategy of Branson:
 Promotional strategy: Branson follows this strategy in order to promote their business
with different ways. Such as Virgin Atlantic also offer great deal to their customers and
also have attractive travel package that make a company different from other tour agency.
This strategy of Branson makes his business more developed than others (Smith and
Boje, 2017).
 Marketing strategy: It is another development strategy which Branson uses in order to
attract wide range of customers towards them. Marketing strategy followed by Branson is
Internet and social media through which people come to know about all new offers of
different company.
 Strategy related to raise sales: This strategy help to increases the sales of a company.
Branson offer different attracting vouchers to their customers and also free ticket with
two and also offer concession regards to child etc.
 Methods of new venture: Company always try to done joint venture with different cities
in order to attract wide range of customers towards them (Williams, 2017).
There are some factors that lead a Branson towards a success and this are as mentioned
below:
 Branson started his business in 1984 in travel industry and recognizes his name with his
company name Virgin Atlantic. In the same year, he also take his first trip with his family
friends in order to introduce the world with their company.
 Further, he also increases his own business in order to expand their current business
towards the virgin hotels. And in 1987, company generated a large amount of revenue in
order to sell the airline tickets up to 1 million passengers (Durkin and Gunn, 2016).
 In this way the business reach towards a success point and never look back, after it
Branson also join hands to Malaysian and Singapore Airlines industry with a share of 51
and 49 percent respectively. In this way, the company reach towards the success points
and consider one of the branded image in world.
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TASK 3
A) Presenting the source of finance
In order to set up a new business, there are various sources of finance are available for the
company such as :
Personal Saving: It is consider one of the most common source of fund that is actually
used by many business. The biggest advantage of using this method is such that simple to use
and if the business is not able to generate more revenue then there is no problems to return any
amount of interest to anyone (Sources of funding, 2018). Hence, many people uses this source of
fund in order to start new business.
Bank Loans: It is another source, through which a company can easily get money in
order to start a business. Through bank loan, a company will get enough money and can start a
business. Bank also provide loan to those people who are actually able to return the money in
defined time only. In return bank takes some amount of interest which needs to be covered in
prescribed time.
Angel investor: It is a person who invest some amount of money in order to start a
business. Those investors have large contact that may be helpful for a person to reach wide range
of customers (Spartz and Weber, 2015). But on the other side, profit as well as losses are shared
at equal ratio, if the person chooses this option.
Crowdfunding: It is a new way of funding and even many company actually uses this
because this method generate more interest and help in further marketing the product with
financing and sometimes it is consider as a boon if there is demand in a market of a product
which is going to be introduce in a market.
Among all, the business chooses personal saving and bank loan option in order to expand
their current business because it is simple and cost effective as well as time saving method.
Hence, to choose this option is quite beneficial for a company because the profit is actually
shared by owner only and there is no extra efforts are needed in order to expand their current
business (Miller and Le Breton‐Miller, 2017).
B) Developing a business plan with market assessment
To expand a new business, Thomas Cook has to develop a market plan which consist of
the following plan such as:
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 Market assessment: To determine the market of UK, a quoted company uses STP model
which help to determine the exact condition and target market for it.
Segmentation: the company actually segment frequent travellers and because of having
brand image in market the company has large customer base. In order to introduce new holiday
package the company can easily increases the sales because of having large customer base
(Hudson and et.al., 2016).
Target: The target market for Thomas Cook is people from 18 years to late sixties and
who want to enjoy the most adventurous tour which is going to be introduced.
Positioning: For Thomas Cook, the positioning is inclusive holidays package. Such that
the company actually introduce all holidays package in order to attract wide range of customers
towards it.
 Business analysis: To determine the business environment, SWOT analysis is actually
used to identify the strength, weaknesses, opportunities and threats which are as
mentioned below:
Strength Weaknesses
 One of the Largest travel company in
UK and have brand image.
 High customer base.
 Its stores are present at global level.
 Having a large competition in market
consider shows that limited brand
presence (Lambert, Bassell and
Friedman, 2017).
Opportunities Threats
 Expand their business at global level.
 Become a largest travel agency in
UK.
 High competition from TUI travels,
Virgin and Emirates.
 uncertainty in airline sector.
 Competitive analysis:
Basis Thomas Cook TUI travels Emirates
Product The company launches
different services as well as
coupons to gain the
popularity of their customers.
Consider one of the
largest tourist sight agency
that offer wide range of
services to their product.
This airlines services
offer their services at
both personal as well
as professional level.
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Book tickets at
international level.
Its services are to
attractive such that
have beds, mini bars
for the comfort of their
customers.
Price Company offer services at
cheap level and also uses
seasonal pricing strategy
(Chambers and Humble,
2017).
Offer high prices of
services with extra
ordinary facilities.
Serves low cost tickets
as compared to other
airline industry.
Place Company operates its unit at
global level and also acquire
the holiday lifestyle company
and many big branded
resorts.
Around 650 retail shops
are available only in UK.
But has their own store at
global level.
Has its new and mini
stores at global level.
Promotion Uses modern promotional
technique in order to attract
wide range of customers such
as advertising, e- brochures,
social media etc.
Uses modern strategy of
promotion and also uses
different strategy in order
to improve their efficiency
of the workers.
Uses promotional
technique through
advertisement,
magazines and
television or through
websites etc.
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 Cash Flow statement:
As per above, as the company's net income growth is increases year by year and the
operating cash flow analysis is also increases which shows that company have a brand image in
market and have a strong financial position. Therefore, to introduce new product, in market is
quite helpful to maximizes more profit and also raise the sales.
 Budget:
Particular Amount ($)
Advertising expense 150
Labour cost 290
Stationary 70
Transportation 380
Miscellaneous 200
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Total Cost 1090
C) Presenting a persuasive business plan for travel and tourism start-up project
Executive summary: For business plan, Thomas Cook wants to introduce new holiday
package for the age group of 18 years to 30years including couples also. The tour is entertaining
and adventurous and this business plan consist of market assessment, business analysis, strategy
and innovative ideas which a company actually uses. Further this business plan provides the
strategy which can be used by a company in order to attract wide range of customers towards
them.
Objectives:
 Thomas Cook wants to establish its unit at global level.
 To become a largest travel company in UK.
 To maximizes the sales and profit for the company.
 Provide best services to their customer to enhances their customer level.
Market analysis: To determine the market, PESTLE analysis is actually used because it
help to identify the external environment of a country. And it consist of the following:
Political Factors Economical factors
 Terrorist attach affect the company in
adverse way.
 Political instability also creates
hindrance in the growth of the
company.
 Inflation as well as recession will also
affect the company's overall
profitability.
 Infrastructure quality in travel and
tourism sector also affect the
company's actual performance.
Social Factors Technological factors
 People changes their mood as they
found new brand who offer the same
at low level.
 Sudden shift in buying power of
 Adopting new technique creates
positive impact upon company's
overall structure.
 Recent changes in technology also
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customers also affect company's
overall finance position.
affect the company's profit (McKeever,
2016).
Legal Factors Environmental Factors
 The company needs to adopt all the
laws and well as regulation in order to
run a business in proper way.
 This law are data protection law,
health and safety law and
discrimination law which Thomas
Cook needs to follow.
 Thomas Cook also needs to follow the
law related to environment such as
sustainability law, air and water
pollution, waste management etc. in
order to sustain brand image in market.
Strategy and innovative ideas: Thomas Cook needs to take proper strategy in order to
beat their competitors in a market. That is why the company uses, seasonal pricing strategy in
order to attract wide range of customers towards them. To make this plan possible, an
entrepreneur should plan so that they will be achieve their defined objectives. In today's world,
there is a need to meet out all objectives through online mode. Because in this world, people
prefer to book online tickets rather than going (Kelly, 2018). Therefore, this new ideas will
further help to raise the business in more effective way as compared to others.
Differentiation: Thomas Cook offer wide range of services to their customers and also
facilitate their customers from new services which no other company does. Such that during the
time of online booking, customers did not pay full amount and offer an option to pay at the time
of delivery this facility makes different from other company.
CONCLUSION
By summing up above report it has been concluded that travel and tourism sector
contribute the largest amount for the growth of economy. As the report concluded that to become
a successful entrepreneur in travel industry, a person should posses all the qualities and skills
such as level of confidence, passionate, leadership skills etc. report further concluded that
Richard Branson is one of the successful tourism entrepreneur who develop new strategy in order
to make their business successful in market. Moreover, report also concluded that as Thomas
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