Analyzing Impacts of Inflation on a Travel Company Assignment Sample

Introduction of Impacts of Inflation on a Travel Company

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• Tourism and Travel companies are those companies that offer services to travelers who are excited to explore different areas and countries of the world (Muhammedrisaevna, al. 2021).
• Inflation in any country highly affects each industry of that country whether it is tourism, IT, education, or even the agriculture and food industry.
• Inflation can create a bad impression of a country in the world, as the currency value of that country decreases over a while.
• This report describes the overview and background of the Expat Explore Travel Company which is a UK-based tourism company. The company is considered a case company for the report.
• The report highlighted the main market area and operations of the Expat Explore Travel Company along with an experience of a company during inflation time in a country in which the company is operating.
• The impacts of inflation on the operations and performance in a market of a case company are also discussed in the study.
• Models and theories of inflation are considered for deeply studying the management strategies of inflation deployed and at last, the whole report is concluded to summarize.

Company background and overview

• The Expat Explore Travel Company was established at the beginning of the year 2005. And the case company's headquarter lies in London, UK.
• The case company is one of the leading tourism organizations in the travel industry of the UK, in the type of coach tour operators(expat explore, 2022).
• The mission of a case company reflects that every traveler feels comfortable on their provided tour in any corner of the world, and along with this the company’s mission is to make tours affordable, fun, and convenient for every tourist.
• The company is founded by two men named Carl Cronje and Jakes Maritz in which Carl Cronje was a South African young boy and Jakes Maritz was a European boy.
• Carl Cronje explores Paris, France, and Jakes Maritz explores the UK and Europe after getting a scholarship from the university. Both boys met in the year 2002-2003 as ex-pats in London after graduating and decided to start a business together.
• In Bromley, London the case company’s first office was set with a 16m² space, in starting of three months of the company Carl used a bookshelf as a table and after that, the office moved to the Canada water.
• The First official tour of a case company was introduced from 24 to 27 march 2005. The tour is developed as a weekend trip program that was executed in Paris.
• At the end of the year 2005, the case company had a well-established name and goodwill in the tourism market of London, and around 4-weekend tours are done in Amsterdam as well as twelve-weekend tours done in Paris.
• The well-reviewed tour departs of a case company were as follows, the long tour of Europe was a 14-day trip in 2006, in July 2007 first escape tour was departs from Europe which was of 12 days, and from 2007 to 2011 the company explored and introduced branded coaches.
• The case company also has a website to keep in connection with their customers and to simplify the complex findings of the company from the client side. The website was developed to create better communication with the new or existing customers of a company. The customers also easily get answers to their questions related to the planned tours by the case company (expat explore, 2022).

Key market area and operations of a company

• The Expat Explore Travel Company offers single-planned tours and packaged tours to travelers who want to travel the various countries in a definite period, by covering most of the country's travelers on the globe (TravelStride, 2022).
• The case company provides its services on more than 60 routes which include various destinations across Europe, Africa, Southeast Asia, North America, and the Middle East.
• The case company also offers services of rail tours. This type of diversification leads a company to attract more new customers.
• The company wants to provide a memorable tour to every traveler so that customer plan their next tour with the case company, so providing beautiful journeys along with beautiful sceneries to the clients the company opted for rail tours.
• Clients can choose any package that is affordable for them. Generally, a case company's tour package includes a night and day stay, breakfast, lunch, dinner, and traveling expenses.
• The case company offers a group travel package to everyone whether the client is a solo traveler, couple, friends, or family. The tour package signifies traveling together like a group on any tour whether it is a luxury tour or a simple/ standard tour.
• The Expat Explore Travel Company's top most priority is to protect employees and travelers along with their safety and health protocols. The company takes all responsibility for safeguarding and ensuring a hygienic environment for their clients when the travelers are on their tours with the company(Tripadvisor, 2022).

Expat Explore Travel Company Logo

(Source: VIEWPOINTS, 2016)

Inflationary period and its main causes

• Inflation refers to the action or condition in which the country being inflated by demand and supply. From the economic point of view, inflation means a downfall in purchasing currency value and continues increasing prices of the goods and services in a country (Haslam, al. 2020).
• The boom period of inflation all over the world was in the year 2020, as at that time due to the coronavirus (COVID-19) pandemic every country's government imposed a strict lockdown across the country(Lenoël, al. 2022).
• The main causes of inflation in the country are as follows increased money supply, rising wages, devaluation of the country's currency, demand-pull inflation, cost-push inflation, and the industry or country's government rules, regulations, and policies (Reinsdorf, 2020).

Impacts of inflations on company’s operations and performance

• During the time of the COVID-19 pandemic, the tour and travel plans of all the travelers in the world were messed up. Due to the complete lockdown in every country in the world, a plan of travelling made by any person was dismissed.
• The government declared strict restrictions on traveling whether it was across the country or abroad. Due to the restrictions imposed by the central government, a case company was not able to implement its operations in any country (Athari, al. 2021).
• In the case, the company provides its services in more than one country but at the time of inflation, it was not possible to bring continuity of the business, as the whole world was stopped and no one approached for any tour plan.
• Alike the operations the company's performance was also affected by inflation, as the rating of the company was falling in the market because of the financial crisis and less work done by a company in the tourism industry.
• The case company was also responsible for tourists who were stuck in the other country or area when the lockdown was announced in that country, even the company also had to give some financial support to its employees and travelers who travel on their package (Obembe, al. 2021).
• But after every country come over the lockdown and inflation period, the case company’s business increased as the company is taking high precautions for safety and health purposes.
• On the other hand, many of the customers are avoiding to travel as the impact of coronavirus does not vanished yet, and this behavior of customers affects the company's irregular operations and downfall in the market position.

Inflation management strategies deployed with inflation theories and models

• Every company in the world planned to deal with the inflation period. The advanced strategies are made in the company to survive in an inflation time also.
• The use of three theories and four models of inflation protects the company from the bad impacts of inflation that may ruin the company’s performance in the market.
• Inflation can be managed through its six steps in a company. This six-step process follows developing office of inflation management, redesigning of products, reskill and up-skill talent, supply chain digitization, transforming procurement, and product prices reset to uplift CX(Harvard Business Review, 2021).
• The strategies of inflation management are to be created in any company with the help of the six-step process of inflation management.
• With the systematic use of management steps of inflation, the Expat Explore Travel Company balanced its internal as well as external environment very carefully at the time of inflation.
• The case company used suitable models and theories of inflation to keep maintaining its position in the consumer market and at the same time deal with inflation (Shaikh, al. 2022).

 Inflation management strategies

Conclusion

• It is concluded from the report that the Expat Explore Travel Company suffered a huge loss during inflation in the COVID-19 pandemic.
• Inflation impacted badly on every industry, especially the tourism industry.
• The operations of a case company were stopped around 2 years which created a bad impression on the company’s performance in the tourism market.
• As the case company is operating its business for around 17 years in the travel industry, the company takes less time to overcome from inflation crisis that affected the company's position.

References

Athari, S.A., Alola, U.V., Ghasemi, M. and Alola, A.A., 2021. The (Un) sticky role of exchange and inflation rate in tourism development: insight from the low and high political risk destinations. Current Issues in Tourism, 24(12), pp.1670-1685.

expat explore, 2022. The Expat Explore Story(online). <https://expatexplore.com/the-expat-explore-story/> (accessed on 28 September 2022).

expat explore, 2022. Travel was paused…now we’re pressing play! (online). <https://expatexplore.com/> (accessed on 28 September 2022).

Harvard Business Review, 2021. 6 Strategies to Help Your Company Weather Inflation (online). <https://hbr.org/2021/09/6-strategies-to-help-your-company-weather-inflation> (accessed on 28 September 2022).

Haslam, N., Dakin, B.C., Fabiano, F., McGrath, M.J., Rhee, J., Vylomova, E., Weaving, M. and Wheeler, M.A., 2020. Harm inflation: Making sense of concept creep. European Review of Social Psychology, 31(1), pp.254-286.

Lenoël, C., Macqueen, R., Mortimer-Lee, P., Patel, U. and Whyte, K., 2022. 1. UK Economic Outlook: Covid-19 leaves inflation in its wake. National Institute Economic Review, 259.

Muhammedrisaevna, T.M., Shukrullaevich, A.F. and Bakhriddinovna, A.N., 2021. The logistics approach in managing a tourism company. ResearchJet Journal of Analysis and Inventions, 2(04), pp.231-236.

Obembe, D., Kolade, O., Obembe, F., Owoseni, A. and Mafimisebi, O., 2021. Covid-19 and the tourism industry: An early stage sentiment analysis of the impact of social media and stakeholder communication. International Journal of Information Management Data Insights, 1(2), p.100040.

Reinsdorf, M., 2020. COVID-19 and the CPI: Is Inflation Underestimated?. Available at SSRN 3758057.

Shaikh, P.A., Muhammad, F. and Khan, S.K., 2022. THE DYNAMIC THEORIES OF INFLATION. Pakistan Journal of International Affairs, 5(2).

TravelStride, 2022. Expat Explore (online). <https://www.travelstride.com/tour-operators/expat-explore> (accessed on 28 September 2022).

Tripadvisor, 2022. Expat Explore Travel (online). <https://find-and-update.company-information.service.gov.uk/company/07728519> (accessed on 28 September 2022).

VIEWPOINTS, 2016. Expat Explore Travel Reviews (online). <https://www.viewpoints.com/Expat-Explore-Travel-reviews> (accessed on 28 September 2022).