Foundation Year Research Project Assignment Sample1

Introduction of The Theories And Models Of Inflation Which Is Used By The Company To Overcome An Inflation Assignment

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• Inflation has both positive and negative impacts on every industry of the country worldwide.
• The causes of inflation are limited but its impacts and effects are different for every industry or company which is operating in the market.
• This study considers the overview of the ultimate travel company which is operating in the tourism industry of the UK and it is also considered a case company for the report.
• The experience of the ultimate travel company during inflation along with its causes and impacts are discussed in the report.
• At last, the theories and models of inflation which is used by the company to overcome an inflation period are also considered in the report with effective images and charts to bring reliability to the report.

Overview of the company

• The Ultimate Travel Company is a UK-based tourism company that was founded in the year 1991, as a privately held company(LinkedIn, 2022).
• The case company's headquarter is introduced in London, and the company is operating its business in the travel arrangements industry in the UK market.
• The company size is approximately 51-200 employees, and it comes under a top tourism company in the UK.
• The case company also has its website to reach out the more customers on an online platform(The Ultimate TRAVEL COMPANY, 2022).
• The ultimate travel company has specialties in providing small escorted group tours, escorted tours, luxury tailor-made holidays, honeymoons, and corporate travel, and types of services to its customers.
• The case company aims to share first-hand knowledge and experience with every individual so that they enjoy a lot and freely explore each country to which they want to travel.
• The case company has around 40 destination specialists or more than that, to guide and support the tourist on their planned travel route.
• In organizing worldwide travel the company has more than 30 years of experience.
• The case company has various directors who worked in the distinct hotel and travel industry worldwide(The Ultimate Travel Company, 2022).
• In southern Africa and Botswana, the case company appointed a professional guide named Nick Van Gruisen.
• In Kenya, all hotels are managed by a leading specialists name Martin Thompson.
• The wildlife treks and trips are organized by Rowan Paterson starting from the Himalayas.
• The case company is operating a tailor-made tour, offering an imaginable experience of each type of travel, and also providing luxury or enjoyable holidays to its customers.
• The ultimate travel company offers reliable services to their customers so that customers, again and again, recommend or choose the case company to plan their holidays.
• The additional services given by the case company to their customers lead the company to a favorite choice for their holiday planning.
• The extra services such as the company postponing a holiday plan or refunding full cash payment, if the government restricted the departure of traveling either in the country or abroad.
• The case company ensures its customers that their travel plan is fully protected in terms of finances as the company has bonded with ABTA and ATOL.
• The company has the strongest position in the tourism industry so that it will easily face and handle any significant challenges occur in the travel industry.
• The case company always has an active destination expert team that communicates with the customers during their traveling period about their problems and makes informed and safe decisions for them.
• There is a different team in a case company that has knowledgeable, trained, and experienced members who can plan the customer's journey anywhere on the globe.
• The ultimate travel company operating in the tourism and travel industry, it has many competitors worldwide such as Lightfoot Travel, TransIndus, Ampersand Travel Ltd, World’s Ultimate Travels Inc, Exsus Travel Ltd, Red Savannah Ltd, etc(zoominfo, 2012).

Experience of the company during the inflation period

• Inflation refers to the situation when the country's currency value decreases and the prices of products and services increase.
• The calculation of inflation is done by adding the prices of distinct things in bulk and contrasting them to the same product's prices a month ago (statista, 2022).
• The causes of inflation that negatively impact the country such as devaluation, demand-pull inflation, rising wages, inflation expectations, and cost-push inflation.
• The ultimate travel company also faced many problems during the inflation period in the UK, as the COVID pandemic affect travel companies a lot.
• From the year 2019, traveling was strictly restricted by the central government of every country due to COVID, and even in 2022 also some impact of COVID-19 can be seen(census, 2021).
• The case company faced pressures from wage costs, rising food costs, labor shortages, and commodities, as the whole tourism country of the UK is facing the same problem.
• As the demand for traveling goes down and the costs to maintain the tourism business increased day by day, the case company faced the loss of finance factors due to 2 years of heavy lockdown in the economy (ShipSage, 2022).
• The real and major headache for the case company is related to the labour and employee shortage in the business that caused a rise in prices, as on the properties of full services the labor costs exceeded 56%, and on properties of limited services, it exceeded 48% (trg Academy, 2022).
• The different patterns of COVID-19 create various restrictions on local or abroad travel which occupy the high rates of hotels, which creates a problem for a case company to fix or schedule the holiday plans for their clients with high precautions and safety(statista, 2022).

Uses of Inflation theories and models that reduce the negative impacts of inflation

• Both models and theories are different in the context of the inflation criteria.
• Inflation has four main types of models such as chaotic inflation, novel inflation, inflation with exponential potential, and a hybrid model of inflation. All the inflation models are performed as a dealer of the potential of the scalar fields.
• Chaotic inflation is the simplest model of high field and scalar field of inflation that consider a potential rule form of a power law (Roberts, and Sorbo, 2021).
• The second model of inflation is novel inflation which studies the possibility of minimum near inflation, and also contains flatness for the inflation possibility which is one of the requirements of the inflation model(Yang, W.M., 2021).
• The third model of inflation also presented the inflation power of law with an exponential possibility of inflation in the country.
• The fourth model of inflation refers to the combination of two scalar fields that are inflation and an additional field to get the simplest version of the hybrid model(Spanos, and Stamou, 2021).
• There are three major theories of inflation that are the conventional demand-pull theory, the structural theory, and the market-power theory(Martin, 2020).
• The market-power theory defines that theory of inflation in which the prices of goods and services are decided together by a single or by a group of sellers that is separate from the competitive prices in a country.
• The conventional demand-pull theory of inflation swallowed that the existence of inflation in a country is generated when the aggregate demand is exceeding from the aggregate supply(Schwarzer, 2018).
• A structural inflation theory believed that the reason for inflation creation in the country is occurring due to changes in the environmental features of structural business and adjustments. The theory contains further two theories in it which are bottle-neck inflation and markup theory.
• At the time of COVID-19 when inflation occurs in every country, the case company adopts all three theories and balances each of them to avoid the negative impact of inflation on the business of a company.
• The main focus of the ultimate travel company is on the theory of conventional demand-pull theory of inflation to maintain the attraction of their clients, as when the lockdown period is over the customers plan their holiday through the case company.
• The case company is operating in the travel industry which has a great impact on inflation and is not just affected by only one country it is affected by those countries' economic conditions in which it is also providing its services.
• The ultimate travel company used the hybrid inflation model to fight against inflation with the help of both the additional and inflation field of the scalar fields. This model aid the case company to plan its strategy to brush the impacts and effects of inflation on the company.

Conclusion

• The report concluded that inflation has a greater impact on the tourism industry worldwide.
• The ultimate travel company has a large market reach in the tourism industry globally. Hence, the company has been highly affected by the inflation which was come in the time of COVID.
• The first topic of the report concludes that the case company has various services from which every customer can easily attract to the company.
• It is also concluded that the ultimate travel company effectively used the inflation models and theories to overcome the inflation crisis.
• The case company experience during the inflation period is not so entertaining but suffering from that time will lead a company to become stronger than last years.

References

Academy, 2022. How is inflation impacting the hospitality industry? (online). <https://blog.trginternational.com/effects-global-inflation-hospitality-industry> (accessed on 24 September 2022).

Census, 2021. Coronavirus and the impact on the UK travel and tourism industry (online). <https://www.ons.gov.uk/businessindustryandtrade/tourismindustry/articles/coronavirusandtheimpactontheuktravelandtourismindustry/2021-02-15> (accessed on 24 September 2022).

LinkedIn, 2022. The Ultimate Travel CompanyTravel Arrangements (online). <https://www.linkedin.com/company/the-ultimate-travel-company> (accessed on 24 September 2022).

Martin, J., 2020. The theory of inflation. Proc. Int. Sch. Phys. Fermi, 200, p.155.

Roberts, M.A. and Sorbo, L., 2021. Reviving chaotic inflation with fermion production: a supergravity model. Journal of Cosmology and Astroparticle Physics, 2021(06), p.047.

Schwarzer, J.A., 2018. Retrospectives: Cost-Push and Demand-Pull Inflation: Milton Friedman and the" Cruel Dilemma". Journal of economic perspectives, 32(1), pp.195-210.

ShipSage, 2022. The Impact of Inflation (online). <https://shipsage.com/the-impact-of-inflation/> (accessed on 24 September 2022).

Spanos, V.C. and Stamou, I.D., 2021. Gravitational waves and primordial black holes from supersymmetric hybrid inflation. Physical Review D, 104(12), p.123537.

Statista, 2022. CPI inflation rate of travel and tourism services in the UK 2022 (online). <https://www.statista.com/statistics/1319309/cpi-inflation-rate-travel-tourism-services-united-ki> (accessed on 24 September 2022).

Statista, 2022. Impact of inflation on travel and tourism worldwide - statistics and facts (online). <https://www.statista.com/topics/9662/impact-of-inflation-on-travel-and-tourism-worldwide/#topicHeader__wrapper> (accessed on 24 September 2022).

The Ultimate Travel Company, 2022. HOLIDAYS BUILT EXCLUSIVELY FOR YOU (online). <https://www.theultimatetravelcompany.co.uk/ppc/index.html> (accessed on 24 September 2022).

The Ultimate TRAVEL COMPANY, 2022. OUR PROMISE TO YOU (online). <https://www.theultimatetravelcompany.co.uk/about/book-with-confidence/> (accessed on 24 September 2022).

Yang, W.M., 2021. A Novel Solution of Inflation and Reheating of The Universe. arXiv preprint arXiv:2104.11073.

zoominfo, 2012. Top Competitors of The Ultimate Travel (online). <https://www.zoominfo.com/c/the-ultimate-travel-company-ltd/51970090> (accessed on 24 September 2022).