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Importance of Financial Management on the Successful Implementation of My Travel Group

Organization Selected : My Travel Group

INTRODUCTION

Travel and tourism are known as one of the fastest-growing industries in the world. It has a vital role in the economic development of a country. There is required a lot of effort and strengths in order to attract domestic and foreign visitors to visit the country's spectaculars, especially the Olympic Games 2012, hence, the UK government is dedicated to engage even more visitors and gain more profits. Along with this, tourism is a known affair for human life, which involves vast dimensions and eventually supports economic and social growth (Buhalis and Darcy, 2011). It has a worldwide has experienced by having phenomenal growth. It is assessed that more than 600 million people travel per year annually. However, the tourism industry of the UK generates revenues of about half a trillion dollars a year and averaging five percent annual growth. The present coursework is based upon MyTravel Group; it's a package holiday company located in the UK. The traveling agency was founded in 1972 and its main brands are – Aspro, Airtours, Direct Holidays, Manos, and so on.

The present research project is based upon the importance of financial management on the successful implementation of business operations in the travel and tourism industry. For this purpose, the researcher has gathered information in this perspective from the views of different authors.

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TASK 1

1.1 Research project and outline its specifications

The research is conducted in order to describe the impact of financial management in growth and advancement of travelling industry. It is essential for every business association to keep enough capital and sources of funds so as to do all working activities in the best possible manner. Financial management settles on a sound monetary choice in the business concern. A financial decision will influence the whole business activity of the worry, since there is an immediate association with different division capacities, for example, promoting, creation work force, and so forth (Choi and Turk, 2011). The travelling agency, i.e. Mytravel company owns has 700 tour retail shops, ownership of 800 aircraft, 81 hotels and resorts which are managed by a workforce of 15000+ employees. The worldwide customer base of the company is 5.7 million and has an estimated market capitalisation of over £1.43 Billion GBP. The vision statement of the company is to be world's best travel and tourism company with that people want travel, invest in and work in. for accomplishing this, the firm is to work while maintaining its independence and steering its own commercial course.

Research aim:

To determine the impact of financial management on growth and development of tourism industry. A case study on MyTravel Group.

Research Objectives 

  • To identify the importance of financial management for a business association.
  • To find out the role of the tourism industry in economic development.
  • To ascertain the impact of effective financial management on the growth of MyTravel group.

1.2 Factors that contribute in selection of research project

There are different factors which can influence research activities and its outcomes. The prime aim of this study is to ascertain the impact of financial management in growth and success of travel and tourism industry. MyTravel Group is a worldwide tour operator which organise several tour packages for customers. In order to get proper understanding on this topic, certain questions are formed to resolve problem statement. For this, data collections methods are being used this to investigate the study in better manner (Evans, Stonehouse and Campbell, 2012).

1.3 Critical review

It is one of the most crucial part of research project which signifies various viewpoints of authors upon specific area of concern. Literature review helps investigator to gather information as per the topic of entire study. Generally, its a source of getting information through secondary data.

Significance of financial management for a corporate association

According to Gibson, Kaplanidou and Kang, (2012) the term finance is know as lifeblood for every corporate association, it needs to attain the requirements of business perspectives. Management is concern how to manage adequate finance so as to smoothly running of all working activities, capital also assists to carefully accomplish firm's goals and objectives. The main role of finance is to promote as well as mobilizing savings which supports to earn maximum profitability and increasing wealth. Financial management supports to recognise financial requirement of businesses and leads an efficient financial planning thus to attain business goals and objectives. It comprises with acquisition of finance by determine various sources at minimal costs. Optimal utilisation and allocation of funds assist in booming up operational efficiency of business perspective.

In context of, MyTravel Group, financial management is liable for enhancing wealth of companies by having an aim to accomplish maximum profit margins and productivity. Efficient management of financial sources aids to mobilise and promote corporate savings. Therefore, it can be said that firms cannot function without proper financial management.

Role of travel and tourism industry in economic development of UK

The travel and tourism industry of UK is outperformed in country's economy. Britain has fifth largest tourism industry in the world. It is a major component of the UK economy generating £114bn per annum and supporting 2.65m jobs. According to John and Susan, (2015) it includes travel undertaken for leisure, for business and to visit friends and relatives and comprises some 200,000 enterprises – 80% of which are SMEs. Britain is vast and diverse nation, due to its glorious traditions as well as affluent cultural heritage, Britain always focus to offer something which is associated with tourism. Its splendid or magnificent monuments draws wide range of tourists across the world. The overall contribution of tourism industry is 5.68% of the national GDP rate as well as and 8.84% of the total employment. In London,almost 13.72 million foreign visitors which generated US$ 100 billion in 2008 and is expected to increase to US$ 275.5 billion 2018 at a 12.4% annual growth rate.

Influence of Financial management on growth and development of MyTravel Group

With the viewpoint of Koutra and Edwards, (2012) finance is crucial function of every business organisation; it is not only a good indicator but also holds firm's growth and success. Finance has its own traits or characteristics which can affect operations in diverse manner and boost up their efficiency. An effective and efficient management of finance encompasses with various tasks which enables a firm to obtain capital for success, maximise potential income, allocate resources as well as evaluate results by accounting statements. In competitive environment, it is necessary for business associations to keep enough availability of finance so as to all tasks and activities in a systematic manner.

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When a firm is financially strong then it would be able to invest in various project; it results high returns on investments which increases profitability and market share of the company. High working capital also helps travel and tourism businesses to prevent risks and uncertainties. An organisation with high amount of debt can become over-leveraged, it implies it has high fixed costs linked with financing. As same as keeping financing to a minimum can greatly strengthen the financial health of a company. Therefore it can be said that, an effective financial management also helps in improvising quality of products cause it enables firm to implement new and innovative tools of production so as to gain high competitive edge.

1.4 Research project specification

Information collected by the researcher with an aim to arrive better outcomes has a fundamental role in competition of entire study. There are two main sources of data collection, such as – primary and secondary. In which primary sources of data collections helps to get up to date and new information which is based upon research theme. On the other hand, secondary method of data collection helps states to that information which is already collected for another research and also helps in carrying out a new study as well (Ma and Hassink, 2014). For completition of this research, both methods are used. A questionnaire will be made by considering 50 people for data evaluation.

1.5 Appropriate plan and procedures for agreed research specification

In order to accomplish all research activities and tasks, it is necessary for investigator to create an appropriate plan or procedure thus to save time and cost. The plan contains different activities with their time frame thus to do all activities in an appropriate manner. Following is defined certain stages to process a research project: -

  • Formulation of research aim & objectives – Its an initial step of every research project which provide direction to researcher on which area study is going to be completed.
  • Literature review – It involves numerous articles, journals, books and websites to gather and evaluate information.
  • Research methodology – To find out numerous methods for completion of research project.
  • Data collection – Collect relevant data and information from specific group of persons.
  • Data analysis – Analyse results or interpret them
  • Conclusion & recommendations – At last, researcher gives certain suggestions to modify the study in order to arrive better outcome.

TASK 2

2.1 Match resources to hypothesis and question of research

Research questions

  • Q1. What is the significance of financial management for a corporate association?
  • Q2. What is the role of travel and tourism industry in economic development of UK?
  • Q3. How financial management affect growth and development of MyTravel Group.
  • Q4. Describe the structure of Britain Tourism?
  • Q5. What are the ways by which tourism companies can enrich their functional area?

2.2 Research investigation as per the agreed procedures and specifications

While carrying out a research project, several methodologies are being used so as to arrive at better conclusion. There are two main methods of research, such as – qualitative and quantitative. In which, qualitative method is acquired to recognise attitude and behaviour of people on particular topic; there is needed no statistical information. On the other hand, quantitative research is based upon numerous figures and further numerical information as it is beneficial for researcher to implement experimental techniques (Morrison, 2013). For competition of this research project, there is selected qualitative method so as to attain qualitative information and attain research aim and objectives.

2.3 Record and collect relevant data

Questionnaire

Name

Age

Gender

Q1. Since how many years you ate connected with MyTravel Group?

A. Last 6 six months

B. Since one year

C. More than a year ago

Q2. Do you think that systematic management of finance is liable for growth and development of business associations?

A. Yes

B. No

Q3. What is the main benefits of financial management?

A. Brings economic growth and development.

B. Enables to take better decisions

C. Ensure financial stability

Q4. Do you think that MyTravel Group having sufficient amount of capital to manage its operations?

A. Agree

B. disagree

C. Can't say

Q5. What is importance of financial management in travel and tourism industry?

A. Improve market share

B. Obtaining maximum competitive edge

C. Provide better quality of services

Q6. Is growth and success of Tourism industry affects economic development of UK?

A. Yes.

B. No.

Q7. What are the ways through which MyTravel can enlarge its functional areas?

A. Improving quality of services

B. Increasing product line

C. Applying innovative tools in production

Q8. Any Recommendations to achieve high competitive advantages at marketplace.

TASK 3

3.1 Techniques of research evaluation

Following is defined different techniques of research evaluation, such as -

  • Research design – It helps in examining different alternatives of research and then select the suitable method to resolve research problem. There are two main types of research design, such as – descriptive and exploratory. In which, the assignment is based upon descriptive research design as it provides a brief discussion upon research topic and simultaneously it also helps in assessing research problem as well.
  • Research approaches – It defines the main procedure that a researcher needs to follow thus to carry out an effective study. There are two main research approaches, such as – inductive and deductive. In which deductive research signifies a new theory from gathered information whereas inductive research helps investigator to evaluate various theory (Murphy, 2013). For this study, there is used inductive research approach in accomplishing better outcomes.
  • Data sampling – There is required for researcher to identify a sample for carrying out research so as to arrive adequate outcomes and draw a meaningful conclusion. Probability and non-probability are two methods of sampling. In which probabilistic method is chosen for competition of this study. Under this, 50 respondents are considered who are regular clients of MyTravel group.
  • Ethical consideration – It is essential for researcher to follow all ethics or principles while getting information. Basically, ethics decides a differentiation between what is wrong and what is right. It resolves all issues linked with study and completion of working activities.

3.2 Analysis of results in original research specification

Theme 1: Customers' relationship with the company

Q1. Since how many years you are connected with MyTravel Group?

Frequency

A. Last 6 six months

5

B. Since one year

20

C. More than a year ago

25

Interpretation:

As per the above diagram, it get assessed that people are using products and services of MyTravel Group since many time. With the opinion of 25 respondents, they say that they are connected with the company more than a year ago whereas 20 customers stated that they are using its services since one year. And remaining 5 says that they are linked with the firm from past six months.

Theme 2: Managing finance for growth and development of business organizations

Q2. Do you think that systematic management of finance is helpful in growth and development of business associations?

A. Yes

45

B. No

5

Interpretation –

The above diagram stated that efficient and proper management of financial resources helps in increasing business viability and popularity across marketplace. It helps management how to cope up with financial issues as per the opinion of 45 respondents. Apart from this, 5 participants says that company needs to make modifications in other business activities also for its market growth.

Theme 3: Advantages of financial management 

Q3. What is the main benefits of financial management?

A. Brings economic growth and development.

35

B. Enables to take better decisions

10

C. Ensure financial stability

5

Interpretation:

According to this graphical presentation, it is analysed that 35 respondents are saying financial management brings economic growth of business associations in respect of raising its working capital. Apart from this, 10 respondents stated that it enables business to make imperative decisions and gain high competitive edge. And remaining 5 says that financial management ensure potential financial stability of firms.

Theme 4: Financial capability of MyTravel Group

Q4. Do you think that MyTravel Group having sufficient amount of capital to manage its operations?

A. Agree

35

B. disagree

3

C. Can't say

12

Interpretation –

This graphical signifies that there are over 35 agreed on this statement as MyTravel Group has enough capital to manage its operations in the best possible; it is the reason that company performs very well in the marketplace. On the other side, 3 people totally disagree with this whereas 12 don't want to give any comment on this topic.

Theme 5: Importance of financial management

Q5. What is importance of financial management in travel and tourism industry?

A. Improve market share

10

B. Obtaining maximum competitive edge

15

C. Provide better quality of services

25

Interpretation:

According to the market survey, it is analysed that financial management is one of the critical task of business associations. With the viewpoint of 10 people, it helps in improving market share of the company whereas 15 stated that financial management obtains high competitive edge. Beside this. 25 respondents stated that it delivers efficient or better quality of services to customers.

Theme 6: Impact of Travel and tourism industry on UK's economy

Q6. Is growth and success of Tourism industry affects economic development of UK?

A. Yes.

40

B. No.

10

Interpretation:

As per the market research, 40 people stated that travel and tourism industry has a vast impact on growth and advancement of UK economy whereas 10 are totally disagree with this statement.

Theme 7: Ways of enhancing functional areas

Q7. What are the ways through which MyTravel can enlarge its functional areas?

A. Improving quality of services

15

B. Increasing product line

5

C. Applying innovative tools in production

30

Interpretation:

The above diagram signifies that, 15 customers are saying boost up quality of services is one of the great way of enhancing functional or operational area of company. Whereas 5 states that firms should increase its product line and remaining 30 are in favour of implementing new and innovative tools of production.

3.3 Recommendations to research to link it with research findings

After assessing the current situation of the company, i.e. MyTravel Group it is advisable to management it needs to acquire effective tools and techniques of managing finance so as to take imperative decisions. Financial manager of the company should also evaluate cash inflow and outflow within business and also prepare a budget thus to ascertain the amount which will be charged on each and every activity. In order to attain numerous customers' towards tourism, MyTravel needs to improvise quality of its services; for this it can also implement innovative tools, i.e. social media sites so as to promote itself over the world. It is also essential for business organisations to implement new and innovative techniques, i.e. accounting software thus to manage its finances in the best possible manner. For its efficient use, travel and tourism organisations can also provide training and development assistance to its employees as they can improvise their skills and abilities. Looking for the best assignment help in Canada? We deliver the best content with 24*7 Chat Support. 

CONCLUSION

As per the above discussion, it get concluded that proper or systematic management of financial sources helps organisation to gain high market growth and evolution at marketplace. The report has based upon impact of financial management on travel and tourism industry. For this, certain objectives are decided so as to gain better research outcomes. A literature review has been made for getting theoretical information about area of concern study. Apart from this, in order to gather data certain methodologies are used and the entire data has evaluated so as to recognise customers' response towards business. At last, several recommendations are also provided hence to make few alterations in research project and attain better outcomes.

REFERENCES

  • Buhalis, D. and Darcy, S. eds., 2011. Accessible tourism: Concepts and issues (Vol. 45). Channel View Publications.
  • Choi, H. C. and Turk, E. S., 2011. Sustainability indicators for managing community tourism. In Quality-of-life community indicators for parks, recreation and tourism management (pp. 115-140). Springer, Dordrecht.
  • Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism. Taylor & Francis.
  • Gibson, H. J., Kaplanidou, K. and Kang, S. J., 2012. Small-scale event sport tourism: A case study in sustainable tourism. Sport management review.15(2). pp.160-170.
  • Henderson, J. C., 2010. Sharia-compliant hotels. Tourism and Hospitality Research.10(3). pp.246-254.
  • Heung, V. C., Kucukusta, D. and Song, H., 2011. Medical tourism development in Hong Kong: An assessment of the barriers. Tourism Management.32(5). pp.995-1005.
  • John, S. and Susan, H., 2015. Business travel and tourism.
  • Koutra, C. and Edwards, J., 2012. Capacity building through socially responsible tourism development: A Ghanaian case study. Journal of travel research. 51(6). pp.779-792.
  • Ma, M. and Hassink, R., 2014. Path dependence and tourism area development: the case of Guilin, China. Tourism Geographies. 16(4). pp.580-597.
  • Morrison, A.M., 2013. Marketing and managing tourism destinations. Routledge.
  • Murphy, P. E., 2013. Tourism: A community approach (RLE Tourism). Routledge.
  • Nielsen, H. and Spenceley, A., 2011. The success of tourism in Rwanda: Gorillas and more. Yes Africa Can: Success Stories from a Dynamic Continent. pp.231-249.
  • Pike, S., 2012. Destination marketing. Routledge.
  • Ritchie, J. B., Amaya Molinar, C. M. and Frechtling, D. C., 2011. Impacts of the world recession and economic crisis on tourism: North America. Journal of Travel Research.49(1). pp.5-15.
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