Table of Contents INTRODUCTION...........................................................................................................................3 LO 1.................................................................................................................................................3 P. 1 Rationale and principles of revenue management...............................................................3 P. 2 Revenue management tools to generate and maximise profit............................................3 M. 1 Impact of differentiated pricing strategies on revenue management in a specific sector...4 D. 1 Critically analyse the principles of revenue management...................................................4 LO 2.................................................................................................................................................4 P. 3 Different stages of the HR life cycle....................................................................................4 P. 4 Development of a performance management plan for a specific travel and tourism job role...............................................................................................................................................5 M. 2 Evaluate the importance of the HR life cycle in relation to strategic talent management..5 D. 2 Effective recommendations and judgement to improve HR processes and documents......5 LO 3.................................................................................................................................................5 P. 5 Specific legislation to which travel and tourism industry must adhere...............................5 P. 6 Impact of employment and contract law in business decision-making...............................6 M. 3 Examine the potential implications of legislation, regulations and standards....................6 D.3Criticalexaminationofpotentialimplicationsoflegislation,regulations,ethical principles and standards..............................................................................................................7 LO 4.................................................................................................................................................7 P. 7 Different types of financial statements and reporting mechanism......................................7 P. 8 Importance and value of budgets.........................................................................................7 M. 4. Interpretation of financial statements and reports.............................................................8 D. 4. Evaluation of business performance based on financial statements and reports................8 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION This study will highlight, core principles of the revenue management in travel and tourism industry. It study will also establish the fact on assessing and managingHuman Resources life cycle. Furthermore, this study will help in effectively identify the impact of various legislations and laws for effectively retaining and developing human talent into the organization for effective decision making. This study will also examine various types of financial statements and reports which helps in identifying variances and controlling business performance. Tourism Union International (TUI ) group is one of the largest travel and tourism company across the world. It mainly deals in leisure resorts, hotels, airlines, cruise lines, holiday packages and charter. LO 1 P. 1 Rationale and principles of revenue management. Revenue management is an effective application which helps in effectively understanding the behaviour of the consumers to optimize the availability of the products which eventually leads to maximizing the revenue growth (Board and Skrzypacz, 2016).It helps travel and tourism industry in improving the occupancy of the business which helps in yielding higher profits. Revenue management helps in analysing current data, market analysis, segmentation, yield management, revenue performance forecasting, KPI tracking, demand forecasting, dynamic pricing, competitor analysis and customer behaviour analysis. Revenue management helps in managing over staffing and effectively optimizing the manpower of the organization to attain higher results and outcomes. P. 2 Revenue management tools to generate and maximise profit. Property management system: Revenue management tool mainly focuses on four critical tools which helps in property management system by making workforce easier by effectively adapting to various technologies to reach higher goals and objectives which leads to higher attainment of performance, productivity and profitability (Kimes and Wirtz, 2016). Booking engine: Integration of new and advanced technology into the organization focuses on integrating new advanced communication and information technology for processing payments online, easy booking, surfing of room availability and holiday packages, reservations,
online prices, real time update, etc. which helps in higher operational efficiency, productivity and profitability for TUI group. Rate shopper: It is an effective tool which helps in evaluating the prices of competitors on a real time basis. It leads to higher sales, managing competition by integrating effective revenue management strategies. M. 1 Impact of differentiated pricing strategies on revenue management in a specific sector. Differentiated pricing strategies means an effective process of charging different cost to differentcustomers.Thisstrategyisalsoreferredtoaspricediscriminationorprice differentiation. revenue management. It helps inincreasing in overall sales, expand target audience and build customer loyalty which leads to long term sustainable growth of the business and higher revenue and profit. D. 1 Critically analyse the principles of revenue management. (AbrateandViglia,2016)establishedthefactthat,revenuemanagementhelpsin managing various customer segments by critically evaluating the market segment to increase the productivity.(Kimes and Wirtz, 2016) investigated that,revenue management helps in dynamic pricing, competitor analysis and customer behaviour analysis which leads to higher revenue growth and profitability for the company. LO 2 P. 3 Different stages of the HR life cycle. The Human Resource life cycle comprises of different stages between the employees and the management of the organization- ï‚·Recruiting and On-boarding-This stage include the role of HR department in relation to the recruitment and selection of the candidates in order to provide the workforce stability in an organization. It includes activities such as placing job ads, selecting the candidates , conducting interviews etc. ï‚·Orientation and Career planning-At this stage the employees that are newly selected are been guided regarding the policies and procedures as well as mission an objectives of the company and career planning involves guiding the employees for their long term career goals with the company(Talias, 2016). ï‚·Termination or Transition-The employees will not be a permanent asset for the company as some will leave the company after the retirement and some will simply lay
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off as they get the opportunities. The role of HR manager here is to execute the systematic procedure of the termination is being followed and conduct exit interviews as per the company's policy. P. 4 Development of a performance management plan for a specific travel and tourism job role. The performance development plan is a tool which is used by the company in order to improve the performance of the employees (Yulianto, Ahmadi and Asteria, 2018). The steps of the plan are as follows- Plan-the first step is to plan that how the performance of the employees can be improved by using which techniques and tools. Act-after making the plan the next step is to act according to the plan made by the manager. Track-the next step is to track that whether the planned tools and techniques are applied in accordance or not. Review-it is the last step in the performance management plan. This step makes sure that what the manager has planned is acted in accordance with the same. And if that is not in accordance then they have to take corrective measures. M. 2 Evaluate the importance of the HR life cycle in relation to strategic talent management. The HR life cycle is important in relation to the talent management because of the reason that the HR cycle ensures that at which stage the employees are working and how they have to develop their skills and traits so that they can go to next stage in the HR cycle. D. 2 Effective recommendations and judgement to improve HR processes and documents. Some of the recommendations are by creating employees development plans, timely update the job description according to the change going on in the market, improvising the performance evaluation process and many other practices be used. LO 3 P. 5 Specific legislation to which travel and tourism industry must adhere. There are number of legislations and regulations that must be considered by TUI in order to perform its business activities without any complications. The company needs to follow and adhere one legislation that is mainly important- Package Travel, Package Holidays andPackage Toursregulations 1992-This regulation ensures that all the Tours and Travel companies must offer the package holidays as
subject to the rules and policies of Package. This legislation set the responsibilities on Tour operator company for their customers and also ensures the rights of the customers against the companies if these regulations are breached. Thus, TUI group must consider these regulations while designing and offerring the holiday packages to the customers(Hall and et.al., 2015). P. 6 Impact of employment and contract law in business decision-making. Impact of employment law in business decision making-The employment and Labour Law in UK creates various impacts on decision making of Tourism industries. As such the law states that the employees must be allowed as 28 days of total paid leaves during the year. TUI group has to follow the same guideline as per the law and execute the same. The company has to pay its employees even after not receiving the service from employees, this in turn affects their decision making as loss of revenue along with the loss of productivity over a period of time. Also, The minimum wages act implies the TUI group to pay the minimum wages to the workers for their service even aftUI group has to follow and maintain as per the agreement. It affects the company's decision making regarding several laws for intellectual property rights as well as the anti-competitive services in different regions. The company has to consider these factors while initiating its activities for maintaining the terms of the contract. er not earning a desired surplus. Impact of contract law in business decision making-As in UK, a contract is termed to be an agreement enacted by law. The contract comprises of various terms and conditions of the business that TUI group has to follow and maintain as per the agreement. It affects the company's decision making regarding several laws for intellectual property rights as well as the anti-competitive services in different regions. The company has to consider these factors while initiating its activities for maintaining the terms of the contract. M. 3 Examine the potential implications of legislation, regulations and standards. The following are different legislation, regulations and standards in Tourism sector business- ï‚·Development Of Tourism Act 1969-The main objective for this act was to enhance the Tourism business in UK and Great Britain and providing assistance to the Tourism business companies to expand its business. ï‚·Disability Discrimination Act (DDA)-This act aims at ending the discrimination among the people with disabilities and enforce the travel companies to promote the opportunities
to these people so that they can roam and travel. The act has also made the government to reduce the standards and regulations from the tourism companies. D. 3 Critical examination of potential implications of legislation, regulations, ethical principles and standards. Jenkins and et.al., (2015)states that the legislations imposed are mostly in the favour of tourism companies and helped the Tourism business to grow and expand in several markets. The Development of Tourism Act 1969 provides the financial assistance to the tourism companies in UK and also promotes the tourism activities to grow its business. On the other handJamal and Camargo (2018)argues that various regulations related to the Package holidays have created complications for the Tourism business as it restrains the companies to design the package as per their policy and make them produce it as per the government rules, which affect their business in several ways. LO 4 P. 7 Different types of financial statements and reporting mechanism. There are many types of financial statements used by the companies in assessing and evaluating their financial status. These statements are as follows- Profit and loss account-it is a statement or an account which helps the company in assessing and calculating the profit or the loss incurred by the company during a financial period. It is calculated by totalling all the incomes and expenses for the year and then subtracting the total expenses from the total income (Traina, 2018). Balance sheet-it is a statement which helps the company in evaluating its assets and the liabilities for the whole financial year. It includes all the current assets and current liabilities along with the non current assets and non current liabilities. Cash flow statement-it is a statement which is used by the company in getting the information relating to the cash used or spend within the business. The cash flow statement records all the cash inflows and the cash outflows during the whole financial year incurred by the business during the whole financial year. P. 8 Importance and value of budgets. The budget refers to the planning in advance for all the expected incomes and the expenses which are going to happen in the near future. It may also be defined as planning in
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advance relating to all the incomes and the expenses which may or may not incur in the future. The budgets are important because of the following reasons- the main reason is that it helps in properly and optimally allocating the scarce resources because it helps the company in allocating the funds to those areas where it is more necessary. Another reason is that it helps in reaching to the ultimate objective because the budget helps in prioritizing the spending which needs to be done first. M. 4. Interpretation of financial statements and reports. The interpretation of the financial statements and reports is very necessary in order to assess the financial information of the company. This interpretation helps the company in knowing the profit or loss incurred and the total assets and liabilities and also the net cash flows for a financial year. Also the interpretation of financial statements helps the company in comparing itself with the competitors (Tinkelman and Fan, 2018). D. 4. Evaluation of business performance based on financial statements and reports. On the basis of the financial statements and the reports the business performance is evaluated. This is because of the reason that the business performance can be assessed only by the profit or the loss incurred. If the company earns profits then it means the business performance is good and vice versa in case of loss. CONCLUSION From the above study it has been summarized that revenue management is very necessary for the business to be very successful. Further it outlined the revenue management tools. Further it discussed about the different stages of HR life cycle along with the steps in the development of the performance management plan. Furthermore it highlighted some of the specific legislations which must be followed by the tourism industry along with the impact of the impact of the contract and employment law on the decision making. At last the report demonstrated some of the different types of financial statements and their importance.
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