Entrepreneurship in Travel and Tourism: Business Analysis Report

This report delves into the realm of travel and tourism entrepreneurship, examining the essential traits and skills required for success. It begins by outlining key entrepreneurial characteristics, such as opportunity recognition, resource management, leadership, and financial acumen, and includes a self-assessment using a traffic light model to identify strengths and weaknesses. The report then analyzes the business strategies of successful travel and tour entrepreneurs, using Ovation Travel Group and its founder, Paul Metselaar, as a case study, highlighting the importance of adaptability, seizing opportunities, ethical business practices, and a strong vision. It also discusses financial aspects, market analysis, and the creation of a persuasive business plan, providing a comprehensive overview of the entrepreneurial journey in the travel and tourism sector.

Travel and Tourism
Entrepreneur
Table of Contents

INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
a) Entrepreneurial traits and skills required to be a successful travel and tourism entrepreneur 3
b) Format for measurement of Entrepreneur's traits and skills that may help to identify
strengths and weaknesses for development benchmark to be successful-.............................5
Task 2...............................................................................................................................................8
a)Analysis of business strategy used by successful Travel and Tour entrepreneur and
evaluation of factors that lead to success of entrepreneur's business organisation. ..............8
Task 3...............................................................................................................................................9
Financial support for new business project............................................................................9
Business plan including market assessment, business analysis and cash flow analysis........9
Persuasive business plan for Travel and tourism start-up......................................................9
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Travel and Tourism industry comprises of providing facilities of travelling,
accommodation and sightseeing to people. This industry is the world's largest commercial
industry in the world and is managed by UNWTO. Tourism industry is rapidly growing in the
past few years from 1.2 billion tourists arrivals in 2012 to 1.5 billion tourists in 2017. It is also
calculated that every one out of ten people in the world is a part of Travel and Tourism industry.
This report will highlight on entrepreneurship traits and skills for being a successful travel and
tourism entrepreneur, business analysis of Tourism industry and Entrepreneur skill audit to check
the skills of entrepreneur.
Task 1
a) Entrepreneurial traits and skills required to be a successful travel and tourism entrepreneur
The entrepreneurship process is about creation, evaluation, application and
commercialization of the new ideas for new products and innovative services. Entrepreneur is a
person who launches and overseas the operations of new business unit. The travel and tourism
entrepreneurs are self-motivated, self employed and focussed to their aim to grab chances in
meeting their goals and objectives. The following are the traits and skills required for successful
Travel and tourism entrepreneur-
 The entrepreneur must be able to recognize all the opportunities related to the growth of
business.
 The entrepreneur must possess an ability to start a venture which is implementation of
his/her ideas (Moutinho and Vargas-Sanchez, 2018).
 The entrepreneur must be able to arrange all the requirements and resources needed for
starting a venture or business.
 The entrepreneur must be able to collect the manpower required and also be able to
motivate and influence them to work as being planned out.
 The entrepreneur must be a risk taker and ready to accept the challenges and problematic
components and be able to make a suitable solution for it.
 The entrepreneur must be confident enough to perform, flexible to work on, and develop
creative ideas for growing the level of business.
 The entrepreneur must possess high knowledge of the sector in which they are going to
open their enterprise.

 Entrepreneur should be able to conduct market research operations, feasibility of the
market and identification of demands from consumers in a specific market.
 Entrepreneur must possess good Leadership skills and must be able to guide and lead
his/her team members or employees in achieving the objectives.
 In case of Travel and tourism industry, entrepreneur must have excellent communication
skills as in order to communicate and please the clients and tourists and also his/her
employees.
 The entrepreneur must turn out to be fearless and be able to take decisions in critical
situations, without any fear and dependency
 The entrepreneur should have ability to visualise things and develop his thinking out of
the box from others. It will make happen the situation according to his/her vision.
 The entrepreneur must have good financial management skills as to achieve his/her
primary objective of earning profits. Financial management also involves designing
economical packages of tourism in order to attract customers (Wu and et.al., 2016).
b) Format for measurement of Entrepreneur's traits and skills that may help to identify strengths
and weaknesses for development benchmark to be successful-
As an entrepreneur, I prefer using traffic lights model to measure my characteristics and skills.
The indication of different colours of lights are given below-
Need to work on it. Not totally sure Confident
Characteristic
TIME AND SELF MANAGEMENT
Able to organise time and perform all the activities before time.
Know the exact way for help and support during difficulty in task performance.
Keep a reminder in calendar for reminding the dates of attending seminars and
other important dates.

Timely arrival for appointments and meetings.
Mission and targets regarding the career and use them to focus on current
objectives.
Aware of time waste and avoiding them during completion of task.
CRITICAL THINKING AND PROBLEM SOLVING (Trait)
Using different methods to find a solution to problems and consider all other
views and options.
Able to evaluate many alternative solutions and predicting best one for solution.
Ability to simplify Complex problems to smaller divisions.
Ability to conduct productive teamwork for solving problems.
Able to find out the expected return from myself in a particular task.
ORAL COMMUNICATION (Skills)
Able to value suggestions and thinking of others in a Group Discussion, even
though I Disagree it.
Confident enough to place and contribute ideas and opinions in group
discussion.
Able to cross question the people after their speech completion
Confident in explaining new concept to the people.
Confident in presenting a topic.
WRITTEN COMMUNICATION(Skills)

Confident enough to structure a particular assignment in paragraphs and using
various signs to communicate ideas more effectively.
Convert notes from the presentation that capture key points.
Ability to write in appropriate style for my subject.
Confidence in making no grammatical and spelling errors in writing assignment.
Able to use effective method in planning and organising the information that has
to be written.
Ability to avoid plagiarism through referencing a work.
Able to make effective use of sources to make my argument more convincing
and being considered as well informed about a topic.
Confidence in writing letters and reports and frame CV as according to the
format and style of formal articles.
INFORMATION LITERACY: READING (Skills)
Ability to collect information from various sources including journals and
magazines, Online databases and internet.
Understand the required article or information to complete a task before
implementing any further step.
Able to convert complicated and vast database into easy and convenient notes
while completing a particular project.
Ability to identify the points that convey author's main arguments and
distinguish them from supporting examples and references.
NUMERACY(Skills)

Ability to make statistical and numerical data that is needed to attain goals and
objectives of the firms.
Able to analyse and study the information presented in graphs, tables and charts.
From the above skills audit table, it is further observed on the strengths and weaknesses
of Entrepreneur-
Strengths-
1. Time management skills and accuracy in performing as task.
2. Focus on mission and goals of the firm.
3. No wastage of time.
4. Performing teamwork in completion of a particular tasks by considering the opinions of
other subordinates and members.
5. Simplify the complex tasks.
6. Confidence in presenting a new topic and explaining them to people.
7. Good writing skills and ability to structure systematic paragraphs while writing an
assignment.
8. Ability to compose letters and reports as according to the suitable format.
9. Good research skills to collect, analyse and interpret the information from various
sources accordingly making a systematic plan for the firm on the basis of this analysis.
10. Entrepreneur is able to classify the information in statistical data and frame measurement
of goals and objectives by converting them into numbers.
Weaknesses-
1. Timely recording the important dates for conducting business activities and meetings.
2. Difficulty in finding his own contribution in firm's productivity.
3. He is not able to value on other's suggestions where he disagrees.
4. Ability to question his subordinates after their suggestions.
5. Lack of using convenient techniques in helping and supporting to the employees during
difficulty.

Task 2
a) Analysis of business strategy used by successful Travel and Tour entrepreneur and evaluation
of factors that lead to success of entrepreneur's business organisation.
For analysing the business strategy used by successful travel and tour entrepreneur an
Organisation named- 'Ovation Travel Group' and its entrepreneur Mr. Paul Metselaar is taken
into consideration-
Ovation Travel Group is a high end travel company that specializes in both corporate travel and
leisure vacations. Ovation Travel Group was founded in 1984 and currently has 30 locations
throughout the United States and United Kingdom and operating 100 plus countries globally.
The company has 660 employees and 200 independent travel advisors providing seamless, cost-
effective travel solutions to individuals and business travel services (Brondoni, 2016).
Development strategy used by Paul Metselaar.
Listening to feedback and adapting changes
Paul Metselaar for becoming a successful entrepreneur has made use of this strategy. The
entrepreneur has been engaged in listening to feedback of others that includes his peer,
colleagues and seniors. He was prepared to accept change and adapt business operations
accordingly. Paul Metselaar was flexible in his working. He says that A lack of adaptability can
result in loss in customers, profits and even business failure.
The following strategies and factors that describe the success story of Paul Metselaar.
 Observing things around- Metselaar's family had been in travel business for seven
decades, he used to travel along with his father when he was kid. He observed things and
started developing a new image of travel experience as a technique to learn new cultures.
 Grabbing the opportunities- When 27 year old, Paul was practising his law studies he
saw his father struggling to run a travel agency, he immediately decided to quit his
studies and entered the travel business, turning the company into “Lawyers Travel” that
helped arrange first-class trips for litigators (Boniface and et.al., 2016).
 Focus on profits and ethical business- Paul later pointed towards capitalizing on Niche
markets and hired a qualified staff and sticking to his morals and ethics. Paul believed

that there would be lot of people to create downfall but the ethics and values can make us
remain safe from all these complications.
 Confident and faith in your vision- Paul had failed several times and disappointed his
family to that extent that he was forced to join his law studies again but he believed that
everything is gonna be okay and had faith in his vision and similarly this faith worked out
to be a success for him.
 Learning from small statements and things- Paul's father used to say him to keep
doors open as you may not know who arrives, this statement turned to be motivational for
him as it generated his never give up attitude during crisis. This showed the impact of
positivity on Paul's business when travel industry faced upside down obstacles during
9/11 attacks and gulf war (Mikulić and et.al., 2018).
Thus it is noted that how the above factors and strategies used by the entrepreneur led him to
success and attain his goals and objectives. These skills are rated 8 out of 10 ratings and ensure
the best qualities needed to be successful entrepreneur.
Task 3
Financial support for new business project-
Following are the sources of finance that an entrepreneur may opt to start the New business-
1. Personal Investment- While starting a firm or business, an entrepreneur must be ready
with his own cash assets and securities, as this will convey message to investors and
bankers that the Entrepreneur is having a long term commitment and ready to take risks
for the business. Through personal investment new business start up can be easily
established in market.
2. Love money- Love money refers to money loaned by family, parents, friends and
relatives in the business. Entrepreneur can lend the money from his loved ones on the
basis of providing them equity in business or interest for the amount. This can help in
establishing the new business venture vacation dairies.
3. Bank loans- These refers to money provided by bank on the exchange of any security
and interest. Entrepreneur can use this source of finance to fulfil the capital requirement
of the new business venture vacation dairies.

Business plan including market assessment, business analysis and cash flow analysis
Market assessment- The following trends in the market are being faced by Travel and Tourism
industry:
Solo Travel- There has been change in the Travel sector as people nowadays prefer to
travel alone rather than in groups and families. More advancement and ease in travelling
facilities has made people familiar with the Travelling. Also reported that 2017 was the year of
most solo travel by individuals (Moutinh. and Vargas-Sanchez, 2018).
Accommodation and travel flexibility- With an exceptional growth in tourism sector,
many facilities regarding the accommodation and travel have been emerged. People get easy
accommodation facilities online through various websites and applications. Also many travel
apps have showed a way to create ease for the travellers in performing their journey comfortably.
Food tourism- Many people nowadays are getting attracted to different foods and
cuisines. Their activity also includes tasting the different types of foods from several countries
and thus made this food factor an important component for Travel and Tourism industry
(Boniface and et.al., 2016).
Business analysis- The following factors are being analysed in order to understand their impact
on Travel and Tourism industry.
Political factors- The political factors and its stability are of immense importance for
Travel and Tourism industry. Various political issues such as terrorism, violence and other
criminal activities affect the arrivals of tourists in a country. Hence it affects directly to the
growth of industry.
Economical Factors- Travel and Tourism industries is one of the best industries in the
world. IT has a strong economic position as the employees of these industry are highly paid as
compared to any other industry. Economic factors such as consumer disposable income and
exchange rates of currency have greater effect on growth of the industry.
Social factors- Social factors plays an important in creating impact on Travel and
Tourism industry. It comprises of drug usage, crowd behaviour and criminal activities. These
factor affect the tourist arrivals as well.
Technological factors- Technology advancement plays an important role in enhancing
the uniformity of tourism industry. These includes online ticket booking, hotel bookings and
other customer care facilities being provided to tourists.

Environmental factors- These factors consist of best use of fuel and oil wastages during
travelling. Thus Tourism industry must consider all these aspects and accordingly perform its
activities.
Legal factors- These factors also have impact on the industry as it consists of many legal
procedures and formalities such as Visa extension, obtaining vis of several countries etc. which
affects the growth of Travel and tourism industry.
Cash flow analysis
year 1 Year 2
cash inflow (£)
sales 15000 19000
total cash inflow 15000 19000
Cash outflow(£)
market research 2000 3000
salary 1000 2000
rent 4000 5000
total cash outflow 7000 10000
net profit 8000 9000
Justification-
Potential of success of new business venture vacation Dairies is that the start-up is new and has
an innovative business idea. Online travel company Vacation Dairies has outlined plans to
introduce ‘Short Stays’, an innovative concept that enables travellers to stay in hotels for short
durations of 4,8 and12 hours. Also the business will make use of innovative promotional
techniques to expand its market share and be successful in long term.
As by observing above cash flow statement for new business start-up, it can be noted that the
first year cash inflows and outflows provided a sound surplus to the firm. But on the other side it
can be noted that the next year net profit got increased and serves as sign of growth for the
business. As being mentioned above that Travel and Tourism industry is one of the fastest
growing industries in the world, it shows the good scope for entrepreneurs to invest in the

industry by providing them higher returns every time. Thus it is justified that the growing
interests of people in Tourism sector is leading to tremendous economic growth in Travel
industry. The profit has been more in the second year that depicts business is being successful.
Persuasive business plan for Travel and tourism start-up
Executive summary- Start up plan is being designed for the 'Vacation Diaries' which is
Travel and Tourism industry.
Mission- The mission statement of company is to cover major European market including
whole of UK.
Vision- Vision of ' Vacation Diaries' company is to be the world's leading Travel and
Tourism industry.
Aim and Objectives- The company aims at creating about 20% of total market share of
travel sector industries in UK by the end of 2021. The company's main objective is to have most
number of subscribers for 'Vacation Diaries'
Company background- The company has an application based software that includes
Flight and bus bookings, Hotel bookings, Cab services and other facilities containing travelling
packages to different countries and Special seasonal discounts.
Product description- The products will be travelling packages for different classes of
customers according to their disposable income and budget. 'Vacation Diaries' have created a one
click software for travellers that will guide them according to their requirements. Travellers have
too book in advance the packages or hotels and other accommodation facilities they want during
their journey.
Marketing mix strategies – Marketing mix strategies consists of (4PS)
Product- Product will consist of various travelling packages according to the requirements of
people. Differential pricing strategy will be used to attract more consumers
Price- 'Vacation Diaries' will fix the prices of these products according to the classes of people.
Even middle income group of people will be able to enjoy several packages.
Promotion- Promotional activities for 'Vacation Diaries' will include 50% discounts on first two
packages and have various coupons and points for referring another person to use the
application. This will automatically promote the name of ' Vacation Diaries'.
Place- The Main Head office will be in London. But most of its functioning will be done online
to enhance its reach in wider areas in Europe and rest of the world.