MGBBT0FYP: Inflation Impact on Verdant Leisure & Mitigation

This report examines the impact of inflationary periods on Verdant Leisure, a holiday park operator in the UK, focusing on the causes of inflation and its effects on the company's operations and performance. It discusses the challenges faced by the tourism industry due to inflation, including reduced purchasing power and increased costs. The report also outlines inflation management strategies, such as contractionary monetary policy, and proposes solutions for mitigating negative impacts and fostering a positive business environment. It references academic sources to support its analysis and provides a conclusion summarizing the key issues and potential remedies for Verdant Leisure during times of inflation.

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Introduction
This report is giving the brief description about
the causes of inflation and the impacts of the
inflation on Verdant Leisure. This report also
concludes the solutions which are helpful in
reducing the negative impacts of the inflation
and creation of positive environment.
Ways in which government can
ease inflation
Some ways by which the governments
can ease the inflation in tourism sector-
•Streamline the public and private interface
by tourism nerve centre
•By ensuring the transparent and constant
communication on protocols
Conclusion
From the above report it is concluded
that there are several challenges which
are faced by the tourism industry
during the time of inflation. The
industry has faced taxation problems,
infrastructure issues and cross border
regulations.
Inflation management
strategies deployed
Solutions for reducing the negative
impacts of inflation and creating
positive impacts-
•Contractionary Monetary Policy-
•Reducing money supply can be done
by increasing interest rates.
•Federal fund rates
Company background and overview
Verdant Leisure is a holiday parks operating
across Scotland, Northern England and Devon.
The business is providing best accommodation
experiences and resort facilities to the
customers.
References
•Entina and et. al., 2021. Tourism industry management in the global transformation: Meeting the needs of
generation Z. Polish Journal of Management Studies, 23(2), p.130.
•Fang, S., Zhang, C. and Li, Y., 2020. Physical attractiveness of service employees and customer
engagement in tourism industry. Annals of Tourism Research, 80, p.102756.
•Khurramov, O.K., 2019. The convenience of electronic marketing in tourism industry. Теория и
практика современной науки, (5), pp.35-38.
Inflationary periods and main causes
Rising inflation has affected every business whether
small or large in the hospitality industry. The main
impact is on the small businesses which are operating in
the food, restaurant and hospitality sectors. With the rise
of inflation, COVID-19 pandemic has also affected the
businesses and the lives of the people.
During the Napoleonic War the United Kingdom
economy has experienced highest rates of inflation. Due
to the first world war the oil prices rise in UK which
had caused high inflation rates. Due to inflation, the
buying power of the general public reduces as the cost
of the products increases (Serravalle and et. al., 2019).
Causes of inflation
• Cost- push inflation
• Demand- pull inflation-
• Rising wages
Impacts of inflations on company’s
operations and performance
Negative
• Erodes the power of purchasing-
• Hurts the poor disproportionately
Positive
• Low debt cost of service
• Lifts the growth and employment in short term