Travel and Tourism Entrepreneurship Report

This report delves into the essential traits and skills required for successful entrepreneurship in the travel and tourism sector. It covers self-appraisal, the development of entrepreneurial enterprises, sources of finance, and the creation of effective business plans. The analysis includes a case study of Richard Branson and Virgin Atlantic, highlighting the importance of leadership, innovation, and strategic marketing in achieving success. The report concludes with recommendations for aspiring entrepreneurs in the industry.

Travel and Tourism
Entrepreneurs

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A) Traits and skills required to be successful entrepreneur........................................................1
B) Self-appraisal with the identification of strengths and weaknesses to be a successful
entrepreneur.................................................................................................................................2
M1 Effective approaches and skills for successful entrepreneur................................................3
D1 Assessment of strengths and weak points.............................................................................3
TASK 2............................................................................................................................................4
A) Development of an entrepreneurial enterprise and evaluation of the factors that led to the
success of organization...............................................................................................................4
TASK 3............................................................................................................................................6
A) Sources of Finance and support in travel and tourism...........................................................6
B) Business plan with market assessment, business analysis and cash flow analysis................7
C) Business Plan for the Travel and Tourism project.................................................................8
D3 Approaches to develop business plan....................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Over the years, Travel and Tourism industry has achieved remarkable growth. It is a
service industry which contributes in economic development of the country. It offers facilities of
accommodation, travelling and entertainment. An entrepreneur is someone that takes initiative to
start something new with innovation in concepts that could bring uniqueness in the business. In
the competitive world, for survival productivity and creativity are essential elements for success
of organisation (Costa and et.al., 2015). To be successful as an enterpriser, certain skills are
required to be possessed by the businessperson. Study is focused on analysing various qualities
required to be a successful entrepreneur. Virgin Atlantic airlines has been selected to analyse
skills of the businessperson to set up new travel and tourism company.
TASK 1
A) Traits and skills required to be successful entrepreneur
An entrepreneur is a challenger and a creator. He/she brings out something new. It could
be a business, an enterprise or initiative. They do not depend on others and come up with
innovation in their ideas and concept. To be a successful businessperson certain traits and skills
are required at workplace. These are discussed below: Leadership: An entrepreneur is required to possess leadership quality. He must be able to
take independent decisions. It is required to have abilities of controlling work activities
and problem solving skills. Capabilities of representing your company is essential. Marketing planning: Objectives and goals of the company can be achieved by
formulating strategies. Analysis should be conducted for evaluation of factors that may
impact environment (Dubey, 2017). It helps in identification of conditions that might
affect implementation of business plan and accordingly decisions can be made to make
profits for the organisation. Risk handling abilities: While setting up new business, risk factor is always associated
with it. An enterpriser should be capable enough to handle risks at workplace and take
appropriate decisions according to the demand of situation. Motivation: It is an important requirement to initiate anything new. Self motivated
person has capabilities to handle failures and make necessary changes to start the
business again.
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 Creativity: An enterpriser is needed to have creative approach in the strategies that is
required to fulfil objectives and goals. Creativity brings uniqueness in concepts and
provides competitive advantage. Self development skills: It is requisite to have time management and sustainable use of
resources of the company by the businessperson. Methodologies should be designed and
developed by considering future conditions. Competitive abilities: Competitive skills helps to stand in front of competitors in the
marketplace (Patel, 2015). Once entry is made in the corporate world, everyday
challenges are faced by the company in the form of introduction of new products,
additive features in the existing commodity or implementation of new technology, etc.
 Maintaining relations: When an entrepreneur makes a good relation with the customers
and rivalries, they always have an advantage of preference over others by them. Healthy
relations at workplace helps in growth of the organisation.
B) Self-appraisal with the identification of strengths and weaknesses to be a successful
entrepreneur
Above stated skills are required to be a successful entrepreneur. Self evaluation helps to
identify strengths and weak points of oneself. Weaknesses which are identified should be
improved and strengths should be utilized in business growth. On self assessment I have
identified following strengths of myself: Motivation: I am self motivated and always try to motivate others also so that they can
put efforts in betterment of business (Hallak and et.al., 2015). I always have curiosity to
explore new things which makes me keep learning. It is very essential to posses learning
habits to grow in every field. Good relations: In travel and tourism sector, it is required to have good contacts with
others as ithelps in business to grow. Therefore, it is required to have quality interaction
and communication at workplace Innovation in ideas: Creative and productive concept brings distinctiveness in the
business. It helps in attracting consumers. Customers always get attracted with the brand
which comes up with something creative in their products. I posses this quality which
might be helpful in setting up travel and tourism company.
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 Good planning: To set up any firm the first basic requirement is the planning to achieve
its goals and objectives. I am good at managing and organizing things well. This would
help me to increase efficiency of the venture.
Irrespective of some strong points I have few weaknesses as well which is required to be
improved so that it could get changed into my strengths. These are discussed below: Risk handling capabilities: I get nervous when it comes to handling risks. I am always
afraid of facing failures at workplace. I understand that in setting up of new venture, one
should always be ready to handle risks (Moscardo, 2014). This is my weakness which is
on priority to be solved. Maintaining finance accounts: I am not very good in business accounting and finance. If
anybody commits mistakes in accounting I would not be able to get it which is needed to
be resolved.
 Leadership: I lack leadership qualities. I am able to work in teams well and benefit as a
whole but not capable to head it.
M1 Effective approaches and skills for successful entrepreneur
To be successful as an entrepreneur leadership qualities and risk handling qualities are
required. Innovating and creative approach makes business stand out in the crowd (Puhakka and
et.al., 2014). Self evaluation helps in identification of one's own strengths and weak points which
can be utilized in enhancement and development of company. By utilizing strengths, future
opportunities can be identified.
D1 Assessment of strengths and weak points
After analysis I have found that I lack in certain area which is required to be rectified
soon to set up new travel and tourism company (Hall and et.al., 2014). My quality of making and
maintaining relations would help me to be successful in business. With my qualities I always
make sure that others also get benefited.
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TASK 2
A) Development of an entrepreneurial enterprise and evaluation of the factors that led to the
success of organisation
Richard Branson is a successful entrepreneur who is the founder of Virgin Atlantic which
is a travel and tourism company. He established firm with all the qualities essential for a
successful businessperson. Skills and traits possessed by him are stated below: Leadership: To set up such a big organisation leadership qualities are essential. He was a
good leader. This quality helped him to open up his company in tourism industry. He had
good management capabilities to mange and organise staff and activities of the business
(Costa and et.al., 2016). He always used to work by taking all the team members along
with to achieve targets and objectives. Dedication for work: He always enjoys what he does. This helped him to explore
innovative ideas which was beneficial in achieving success. Whenever he faced
challenges, he accepted them sportingly and worked hard to accomplish them. Innovation: He always tries to utilize his ideas and viewpoints to bring innovation in
work. He always encourages his team members also to think beyond imagination so that
productivity could be enhanced. Luxurious offers were offered by him for gaining
customer attention. Personal relationship: He always maintained good relations at workplace and with
customers as well. He never made discrimination among employees. He was a good
motivator.
 Professional skills: He was very professional at workplace with the work he was doing
which contributed in success of the firm (Wang and et.al., 2016). He always tried to
communicate with customers and employees so that improvements can be made to
enhance service quality through feedbacks from travellers, conducting surveys, etc.
There are several factors that contributes in success of any organisation. Along with
entrepreneurial qualities and traits development strategies are also important for business to get
successful. Some achievements of Richard Branson are discussed below:
 His business started in tourism sector in 1984 and was recognized as Virgin Airlines.
 He expanded his company in 1985 by establishing Virgin Hotels.
 Huge amount of income was made by him in 1987 by selling 1 million tickets.
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Certain strategies was implemented by him to meet achievements. Some of them are defined
below: Promotional Strategies: he promotes his Airlines by using several techniques. He
introduces great deals and good packages to the customer for attracting them. Marketing Strategies: Luxurious facilities were offered by Virgin Atlantic which was
needed to be introduced to the customers as well (Page, 2014). It was designed to provide
comfort to the customer. This marketing strategy was developed to pull customers
towards their brand. Strategy for New firm: To provide facilities to the customers for accommodation, Virgin
airlines collaborated with several hotels and tourism ventures. Joint venture was done by
Richard Branson with airlines of Malaysia and Singapore both. Strategy to increase sales: By offering discounts, free tickets and concessions on tickets,
huge amount of customers can be attracted which would ultimately increase sales of the
company as well.
SWOT Analysis of the Virgin Atlantic
Strengths
 Customers were satisfied with the
services provided by them.
 Customer satisfaction has always
gained priority.
 Innovation in ideas for product
promotion. To increase sales of the company,
collaboration was done with hotels and
tourism companies.
Weaknesses
 Airlines was available for selected
places only.
 Financial statements did not show
details about shares.
 Lack of transparency pulled back
collaborators (Smith, 2014).
Opportunities Goodwill of the company helped
airlines to acquire new ventures for
business expansion.
Threats
 Market Competition is always a threat
for businessperson which creates
barriers to take initiatives.
 Hijacking, climate conditions and
terrorism, etc. are unpredictable things
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which affects performance of the
company.
TASK 3
A) Sources of Finance and support in travel and tourism
A major issue faced by the tourism sector is of funding and finances which is basic
necessity for implementation of strategies. Various sources are available for increasing funds of
the company (Cassar, 2014). Investments are required for development and redevelopment
processes. Various kinds of promotional programs are conducted by tourism industry to promote
their services. Sources available for finance are listed below:
 Personal Savings: It is the easiest way to acquire funds for the company. Personal
savings can be used anytime and it does not require prior permission from others. No
amount is required to be paid back. It represents positive image of the entrepreneur on the
shareholders and collaborators that they are capable to take risks. Friends and Family: The easiest way to collect capital for the business is family and
friends. In most of the cases, paperwork and legal formalities are not involved when
funds are taken up by closed ones. Amount is not needed to be paid back at certain time.
But with this, there is one disadvantage also that is if company suffers failures because of
some reasons, it affects relationships also with the family and friends who have given
finance for setting up venture. Bank loans: The safest option to take loans is from banks. They are authorised and
eliminates chances of being cheated (Bodie, 2013). Before sanctioning loans, they require
some kind of guarantee from the businessperson. Paperwork and legal formalities are
involved into this process. Due to insufficient and poor assets people fails to acquire
loans from banks. If a person have adequate amount of balance in bank accounts, they do
not get troubles in acquiring bank loans. Overdraft facility: This kind of facility is provided to the account holder of the bank. It
involves withdrawal of money more than the amount present in savings account. This is a
kind of credit agreement. It is carried out between the person taking loan and financial
organisations providing funds.
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 Business Investors: Entrepreneurs who are new in the corporate world and have
capabilities to grow in coming years gets finances by the business investors. Investments
are done on partnership basis (Baptista and et.al., 2013). They are shareholders in the
profits of the company.
 Private Placement: with the objective of raising capital for the firm, securities are sold
out to investors which could be mutual funds, banks, insurance companies, etc.
Business loans are easily available for the ventures in travel and tourism field. Small enterprises
easily get business loans as compared to big ventures. Tourism industry contributes in country
GDP. There are certain areas which are checked and analysed before providing finances such as
brand image, their offerings, functions of the firm etc.
B) Business plan with market assessment, business analysis and cash flow analysis
Capabilities of any organization can only be analysed by evaluating its strengths and
weak points. Market assessment can be carried out with the help of marketing mix of travel and
tourism sector. It is carried out to compare potential of the venture in the market with others so
that how strong is company's position into market place can be assessed (Brandt and et.al.,
2016). It also identifies competition that firm that give to the competitors. Before launching new
company, it is essential to analyse target market and audience. Customer satisfaction should be
given priority.
Market assessment: It helps in introduction of new product into market. It can be achieved by
marketing mix approach. This approach is used for the product promotion.
 Product: Innovative and creative ideas should be added into the product to gain customer
attention. It can be implemented only after proper analysis of the marketplace. Certain
changes can be introduced such as:
1. Facility of booking tickets online can be provided rather than going on booking offices.
2. Impressive tour packages with accommodation facilities.
 Price: Cost for every ticket varies depending on demographics, age and class. Facilities
associated with the type of tickets also varies.
 Place: Several branches of the venture can be opened up for better customer service. It
also facilitates customers to reach easily (Putta, 2014). Offices can be opened up at areas
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which are highly populated to gain customer's focus. Customers always prefers options
that are available at their doorstep avoiding secondary options. Promotion: promotion of services and offers of the company helps in increasing
popularity. It can be achieved by promoting on TV, radios, social media, newspaper etc.
These are the easiest and quick ways to reach customers. Recommendations are also part
of promotional activities.
Cash flow analysis: Financial stability of the company can be identified and analysed by
conducting cash flow analysis. Money can be managed by it. When a new company is introduced
into market, it does not generate revenues and profits according to the expectations. By
implementing marketing strategies and promotional techniques, company acquires growth and
success (Bhattacharyya, 2013). Total operating income, net difference, Cash balance, etc. can be
calculated in cash flow analysis. Properly analysed business have fewer chances to face failures.
Business Analysis: Tourism industry has made remarkable contribution in the country's
economy. There are several opportunities available with the travel and tourism sector for
expansion. With the evolution of society and increased incomes, tourism industry has got
benefited. Tourism is considered as pleasure and relaxation activity. International tourism has
faced sudden increment in the number of tourists because of following reasons:
 Better transportation facilities.
 Advancement in Communication media.
 Increased incomes from the past few years (De, 2016).
 Improved networking system has made easy reach by travel agents to customers.
C) Business Plan for the Travel and Tourism project
Several approaches are available to set up a new firm. Business plan includes SWOT
Analysis, Marketing mix, target market and audience, etc. To make efficient and effective
business plan following are the points to be considered: Executive summary: It constitutes concept of the business which are going to be
developed. Objectives: To start any new venture it is required to have clear objective and goals.
Company is aimed at providing quality and security services to the customers in order to
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acquire satisfaction from them along with holding market position and making
competitive benefits in travel and tourism sector. Market Analysis: It can be achieved by PESTLE analysis and Porter's five forces. Proper
strategy can be formulated after market analysis. Opportunities for business expansion
can be discovered (Travel and tour agency Business Plan, 2017). In travel and tourism
sector, there are lots of organisations that tries to achieve customer satisfaction by
introducing products and services at lower prices. Strategy: Well framed strategy benefits to beat competitors into market. Strategies are
required for marketing, promoting products, developing goods and services etc. It should
be designed in such a way that objectives gets fulfilled along with satisfying customers. Innovation: An entrepreneur must possess innovation in work to gain market attention.
Ideas should be collected from everybody in the organisation and best of it should be
implemented. Its purpose of fulfilling objectives of the company should not get shifted.
In the world of technology, online ticket booking facility should be provided in-spite of
booking manually. Uniqueness: It is an important factor that helps in brand recognition (Patel, 2015).
Product should hold distinctive characteristics to make it different from rest of the goods
into market.
 Services: Packages to be offered to the customers should be formulated like water sports
trip, road trips, Adventure trips etc.
D3 Approaches to develop business plan
Business plan prepared is effective which could help in achieving business objectives and
set up of new travel and tourism company. Innovation in work would make services distinctive
from others. Analysis helps in identification of market factors that may affect growth of the
organisation (Moscardo, 2014). Well planned business achieves growth and success. Objectives
and goals of the company are well stated.
CONCLUSION
Successful entrepreneurship requires strong leadership and risk handling capabilities.
Management comprises organizing and managing of business activities. Well defined objectives
helps organization to achieve success and growth in the market. Innovating methodologies brings
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uniqueness in the business concept. Market analysis and cash flow analysis should be done
before setting up any firm as it reduces chances of facing failures. Various sources are available
for finances and funding such as investors, closed ones, banks, etc. Business plan which is
framed properly increases efficiency of the venture.
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