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Economic Volatility In Poor Countries

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Economics Volatility can be defined as the fluctuation of economies or the unstable growth of economies. The economy of a country plays an important part, especially in poor countries when economics volatility could easily happen. A researcher of Economics once wrote: “Poor countries specialize in fewer and more volatile sectors, poor countries experience more frequent and more severe aggregate shocks, poor countries’ macroeconomic fluctuations are more highly correlated with the shocks affecting the sectors they specialize in” (Tenreyro, 2005). Business Model describes the basis of how an organization forms, distributes, and captures value (Osterwalder). Business Models have a huge effect on many areas. It sustains projects, products, services …show more content…

It helps tourists and local people who wanted to travel with a cheap price. Convenient and easy, you can always check your destination and book a seat. It makes profits for both client and the company when it saves time and money for customers (Economy, 2016). According to blablacar.com, you can also register to be the driver or a passenger. It is becoming a favorite transport of local people when it offers a chance to experience a ride with strangers, also it can promote the tourism industry when tourists can communicate and travel by a special way. The Low-Cost Model The Low-Cost Model focus on how to attract as many as customers as possible by charging a low cost (GLEESON). A specific example is RyanAir, It offers a cheap flight ticket to customers but in return, they charge for flight insurances, extra baggage… But still, this airline is the favorite choice of most tourists. The Low-Cost Model plays an important part in Tourism, providing the needs of tourists with an affordable price. Business Model Web 2.0 (RSS) RSS, presents for Really Simple Syndication, it allows visitors to subscribe to the website’s news and information so they do not have to access the page usually but still being updated. Example: Facebook, Google, Yahoo, Apple … …show more content…

It is a tool for the abstraction of the industry. Business Model shows the image of a company and provides the solutions for most problems (Frank, Nikki Timmermans, & Nico Kreinberger, 2014). Example as the development of Web 2.0 Business Model, it impacts on both Tourism Demand and Tourism Supply. Tourism Demand: With the development of technology nowadays, specifically social networking, Tourists can now being connected with the Internet for the whole trip. It allows tourists to find the best package, easily book hotel/transport and offers many promotions. Its impact on Tourism Demand distributes and produces tourism package (Sigala). Tourism Supply: Since travelers can upload their vacation images online, sharing their experiences, It is use as a tool to attract more customers to agencies. Also the co-operation of organizations and brands has created a huge effect on Tourism. Tourists are allowed to book a group booking online, share the moments on internet and judge the trips. It created a massive positive effect on Tourism Supply

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