The concept of travel and
tourism is very ancient from middle age. Human being wants to travel from one
place to another. Some of the travel and tourism are for refreshment or fun
while another can be profession or business trips. For normal people it is for
fun but for the travel agent or tour guide it is for earning. The government of
respective countries have focused towards the development for tourism and its
destination. According to the world tourism tourism is something where people
move from usual environment to a new location normally for fun. Tourism has
various categories such as local, domestic, national or international. A recent
report of 2016 says that tourism has become major source of income for many
countries and thus it affects the economic condition of host countries.
Breakout of influenza virus most of the countries’ tourism department suffered
a huge loss. The topics deal with the travel and tourism for Start-up Company.
Along with this it will have details discussion about skill and characteristic
required to become successful enterprise and also their strength and weakness.
The other two tasks will say about development of tourism and steps required
for a start-up business in context with travel and tourism.
As the essay is all about a start-up
company of travel and tourism so let's select an arbitrary company based on own
choice. The name of that travel and tourism company will be “Let's go” and this
is a fictitious company. This company will provide tourism facilities for
national and international tour. The organization main motto would be to keep
satisfy all the tourist will our quality of service. Of Course it's another
objective will be to earn profit but at the same time will focus on service and
satisfaction of customers. The company will try to give quality service will
less price. It will also focus on giving respect and keeping good relation with
the tourist. This arbitrary company will also pay attention towards health and
safety of the tourist. The company will also try to preserve the cultural art
and dignity of the country such as handicrafts, monuments and natural
resources. It will even try to raise or donate funds for the welfare and
development of the tourist destination. This organization will try to offer air
tickets for LCC and offline carriers. For tourist guidance this arbitrary
company will also pay attention towards health and safety of the tourist. The
company will also try to preserve the cultural art and dignity of the country
such as handicrafts, monuments and natural resources. And help it will have a
24/7 helpline number. If possible it will have connection with the tourism
ministry of respective countries.
Figure
1: Logo of let’s go
(Source: Ibrahim and Lucky, 2014, p.125)
Every human being requires
some skill to continue their individual life smoothly. When the matter is
related to entrepreneur, then they require a special type of skills. But this
skill varies from organization to organization (Ibrahim and Lucky, 2014, p.125). A start-up or establishing company of travel and tourism
requires skills which could help the company to improve its position and also
to earn more profit. Other objectives of this entrepreneur is to keep the
customer satisfy and also to give tough competition to competitors. Some the
skills are as follows:
●
Discipline:
One of the most important skills required for entrepreneurship. This skill
helps to overcome hurdle, set plans and to design strategy to achieve those
plans. A successful entrepreneur is always disciplined and focus towards their
goals.
●
Confidence:
For making organization successful it is very important to have confidence to
achieve that objective and to make organization a successful one. The
confidence helps to increase the efficiency in business (Mohammed and Obeleagu-Nzelibe, 2014,
p.25). This
skill is basically for the knowledge of the business.
●
Competitive:
Skill to compete other business as no one can do job better than them.
Participation in business should always for giving tough competition to the
competitors. An entrepreneur competitive skill to improve business help to have
competition in the market.
●
Creative:
It is very necessary for an entrepreneur to be creative and to adopt strategy
to make organization successful. This skill helps to have good relation with
unconnected events.
●
Time
management: An entrepreneur should know the value of time. One should always
fix to one job at a time until the job meet its goal. A start-up business
requires minimum 8 hours of work per day.
●
Sales:
Entrepreneur should have the quality to increase the sale of an organisation.
As ultimate motto of a company is to increase sale.
●
Leadership:
The most important skill is leadership as this help organization to manage and
control all the staffs. These skills even help in production and service.
Strength of an entrepreneur is
as follows:
●
Risk
taker: Entrepreneur is the person who takes all the risk of an enterprise. He
personally bears all the financial, management and production risk. If company
fails he is the only person who will bear all the loss. So it's a big courage
to take all this risk.
●
Business
oriented: An entrepreneur is always focused on business and growth of
organization. His full attention is on goals, objective, profits and production
of the enterprise (Grant,
2016, p.45).
●
Determination:
The strength to be determined or focus upon certain thing is very important.
The entrepreneur is fully determine about his goals and objective and also
tries to achieve them.
●
Creative
thinking: The biggest of all strength is this particular point as this help the
person to be creative minded and always try to do something new and unique.
This thinking always brings profit to the organization.
Weakness of an entrepreneur
is as follow:
●
Depend
on other: Most an entrepreneur is the master of an organization so he depends
on other for the outcome. He only gives order and hopes to achieve target with
the help of others. The real contribution is not provided by the entrepreneur (Phillips and Pittman, 2014, p.124).
●
Poor
administration skills: Most of the entrepreneur does not possess administrative
skill so an organization needs to have a good administrative department. As
entrepreneur is the master so he does not focus on these areas.
●
Lack
of time management: Entrepreneur does not have quality to manage time according
to the requirement so he ends up in wasting time doing useless things. Hence
enterprise faces all the loss.
A personal action plan is
something which is related to the objectives of business that is solid. There
are various strategies which would help to be successful entrepreneur can be
through above mentioned skills and strength (Ibrahim and Lucky, 2014, p.125). All the required steps and process are to be obtained and
complete them, division of work according to the capability and lastly work
according to the goals of the organization.
This task needs to take two
travel and Tourism Company of UK. The selected two enterprises are Thomas cook
and Travel stop. Bothe the company deals with holiday package, flight tickets,
cruise and vacation. The details development of the selected two companies is
as follows:
Thomas
cook: This
is a British company founded by Thomas Cook. He was born in the year 1808. The
person is very famous because he founded the first travel agency named as
Thomas cook & son. According to Lall
et al. (2016, p.56), the first trip
begins with the 500 people from Leicester Campbell to Loughborough. After few years
Thomas cook arrange a party and travel from Leicester to Liverpool. In the very
next year he took 350 people from Leicester to Scotland. Thus gradually his
travel agency business grew up. In the year 1851 he took 150,000 people to
London for exhibition. The office of Thomas cook also contain a shop where
essential travel related accessories were been sold. By 1888 the organization had
opened its own office all around the world.
Travel
stop: The
agency was established in the year 1991, aims to provide travel agency service
to tourist. The agency hopes to fulfil the expectation of the customers and to
go beyond that expectation. This agency started with a small school trips but
gradually it enlarged. Presently company have a strong connection all around
the globe. It even have own office in most of the countries. It always thinks
about the customers and select right trips for them. Agency believes in caring,
independency and honesty (E.
Dobbs, 2014, p.68).
The company have potential to give information beyond Google. Above mentioned
points are the main factors for the development of the enterprise.
Porter’s
five forces
would help to get the answer more clearly:
●
Fear
from new entrants: every business organization has competition in the market.
Thomas cook and Travel stop also have fear from entry of new travel agency in
the market. This entrant would affect their business and customers would be
diverted.
●
Threat
of substitutes: The service or product that are been provided by Thomas cook
and Travel stop could be provided by some other company (Shaul and Tauber, 2013, p.80). This would be a big threat
for the enterprise. Price of product can bring threat from substitute.
●
Supplier’s
bargaining power: When there is many service provider then bargaining power of
supplier increases. Presence of single supplier could also increase bargaining
power.
●
Bargaining
power of buyer or customer: Entry of substitutes bring bargaining power in
customers. As they will have many option so they will bargain with price of the
service.
●
Competitors:
Tough competition among the present competitors brings rivalry among the
enterprise. Thus this will affect sale of product.
Figure
2: Porter’s five force
(Source: Shaul and Tauber, 2013, p.80)
2.2 Factor for success of an
enterprise
There are various factors
which are responsible for the success of an enterprise. But sometimes it varies
from enterprise to enterprise. Some important factors are as follows:
●
Growth:
As per Armenski
et al. (2015, p.60), growth of an
enterprise has a deep relationship with the success. Expansion or growth gives
success to the organization. If we look at the above mentioned enterprise
Thomas cook or Travel stop then we could understand the real meaning of growth.
The enterprise expanded or grew from local to national and then to
international. Growth of an enterprise is unstable procedure with no problem.
●
Competitors:
Competition has its own advantage along with some disadvantage. Giving best for
the competition brings ultimate success to the enterprise. Day by day travel
competition among the travel agency is increasing.
●
Opportunities:
Opportunities always gives chance to compete with the competitors. This
competition would give a positive outcome in form of success. Report says that
chance or opportunities always gave success to travel and tourism enterprise.
●
Trends:
Travel agencies need to adopt the current trends as most of the people wish to
take short vacation rather than taking a long one. Enterprise needs to change
their strategy and planning according to the trends (E. Dobbs, 2014, p.68). This would help to attract
more customers and thus enterprise would get success. Hence proved that trends
could give success to enterprise.
●
New
technology: An enterprise needs to keep itself updated with the current
technology. Travel enterprise needs to keep itself attached to the social
networking site and application. This would help to gain attention of
customers. Advertisement in Facebook, twitter and YouTube would be much
benefited to the enterprise. Thus increase in customer would give more sales.
Hence enterprise will achieve its success.
Every enterprise needs
financial support for smooth functioning and operation. Travel and tourism
enterprise needs huge amount of financial help. Support can come from any
direction and in any form. Smooth operation of this enterprise is possible only
with the support of following sources. The sources are as follows:
●
Ministry
of Tourism: All most every country possesses this ministry department. The
primary aim of this ministry is to develop the tourism industry and to attract
more tourists to the host country. Ministry of tourism (MOT) do not supply
funds for tourism but have a scheme named as tourism demand subsidy scheme (Roberts et al. 2014, p.87).
Main aim is to motivate the small industries to invest funds for development of
infrastructure. MOT is providing $28 million for 4 year aims at developing and
overcoming barrier of tourism. Each new project related to tourism will be
helped by government up to 50% of total expenditure.
●
Private
funding: Tourism industry gets financial help from seed capital, venture
capital, private equity, loans and leasing. When industry is started then it
get help from seed capital. Venture capital provides funds for long term. When
individual or private enterprise invests funds for the development are related
to private equity. Loans are been provided from banks to the tourism enterprise
for the purpose of development and establishing the business. Leasing is
something where a company signs contract to provide all necessary equipment at
affordable price.
●
International
agency: Agencies like IBRD, IDA, IFC, TFCI provides funds for the development
of tourism industry. International bank for reconstruction and development
supply funds to the developing nation for purpose of development (Frank, 2014, p.105). International development
association provides funds to the poorest countries for improvement. All this
funding are been used by the tourism industry for the development.
As the selected company let’s
go is on its starting stage so it needs to give good service in the field of
tourism. The company’s main focus is on the low scale people and hopes to fulfil
their dream. The company will have various problem related to finance,
management and competition but still it need to focus on its goals. Some goals
of the company are as follows:
1.
Attract
a equity revenue of $300,00.
2.
Have
its own website and web service.
3.
Good
quality of service.
4.
24/7
helpline customer service
5.
Satisfy
the customer.
6.
Earn
profit from end of 2018.
Market analysis states that
current generation people like to travel from one place to another. Most of the
people focus on short trips rather than long trips once in a year (Rachet, 2014, p.147). Company will even focus on
the strategy of its competitors along with the process to overcome them. SWOT
analysis helps to understand the market.
●
Strength:
The selected company let’s go understand the travel and sector very nicely. It
have own contact with the people of attractive location. Experience team is a
part of the company.
●
Weakness:
As it is a start-up company so its weak point is that customer won’t trust the
company. It has lack of financial support.
●
Opportunities:
As the company is providing same quality of service with fewer prices so it has
big opportunities to attract more customers. The current market support tourism
industry very much (McKeever,
2016, p.110).
●
Threats:
As this is a armature company so it will face problem to compete other. Tourism
is a very tough industry and has many competitors.
Figure
3: SWOT analysis
(Source: Burgess et al. 2015, p.123)
A business plan is something
which has full description of business. In details it will deal with product
service, market, price, finance, human resource and infrastructure. In another
word it deals about the past and present condition of the company and this also
help to determine the future of the company. There are various reason for
preparing business plans and plans are been read by commercial bank, private
investment funds, development funds and private investors (Burgess et al. 2015, p.123).
Business plans is been prepared by the chief executive officer, marketing and
sales managers, development managers and financial managers. The business plans
for selected enterprise “Let’s go” needs to have following steps. They are as
follows:
●
Assessing
the situation of the market: This will deals others opinion on the chosen
enterprise. This will help to know the current position of the company.
●
Develop
a mission: Before going in further details with the business plans a clear
mission is to be identified. This will motivate the shareholders, employee and
the customers.
●
Getting
ready: After selecting a mission it is needed to get ready to achieve that
mission. The mission of let’s go is to promote tourism wit5h good quality of
service in low price. Collect all the required members who will help to achieve
those goals.
●
Setting goals: Goals will help the company to
have a good future in the field of travel and tourism. The goals will be time
bound and measurable (E.
Dobbs, 2014, p.68).
●
Working
for plans: Main focus would be on the sale, development and service. Let’s go
will pay attention towards this entire factor so that it can have a smooth
functioning.
●
Employee
roles: The whole task of company needs to be divided among all the employees.
This will help to complete the task in less time. Sales and production manager
will give details about individual roles.
●
Monitoring
process: The last stage of business plan is to monitor and notice whether all
the steps are in proper operation or not.
The entire requirement are
been fulfilled with full details. Improvement or development in tourism
industry is at high peak. People desired for travelling is increasing. The
start up company let’s go would be a very successful one if it follows above
mentioned plans and strategy. According to the world tourism tourism is
something where people move from usual environment to a new location normally
for fun. Tourism has various categories such as local, domestic, national or
international. A recent report of 2016 says that tourism has become major
source of income for many countries and thus it affects the economic condition
of host countries. This arbitrary company will also pay attention towards
health and safety of the tourist. The company will also try to preserve the
cultural art and dignity of the country such as handicrafts, monuments and
natural resources. It will even try to raise or donate funds for the welfare
and development of the tourist destination.
