Carnival Corporation: Revenue Management, HR Lifecycle, Legal Impact

This report provides an analysis of Carnival Corporation & Plc, focusing on key business areas within the international travel and tourism management context. It examines the principles of revenue management in the cruise line industry, emphasizing pricing strategies and demand forecasting. The report assesses the importance of budgets, financial statements, and reporting methods, including income statements, balance sheets, and cash flow analysis. Furthermore, it explores the use of the HR life cycle for talent management, covering attraction, induction, career planning, retention, and separation phases, offering recommendations for improving HR practices. Additionally, the report discusses performance planning and the impact of legal and ethical considerations on the travel and tourism business, highlighting the need for training on relevant laws and ethical standards within the hospitality industry. This comprehensive analysis aims to provide insights into the operational and strategic aspects of managing a large-scale travel and leisure company.

The International Travel &
Tourism Management Business
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Table of Contents
Introduction .....................................................................................................................................3
Part A...............................................................................................................................................3
Activity 1 – The Key Principles of Revenue Management in the Cruise Line Industry........3
Activity 2 – The Importance of Budgets & Commenting on Financial Statements and
Reporting Methods.................................................................................................................4
Part B...............................................................................................................................................5
Activity 3 – Using the HR Life Cycle for Talent Management.............................................5
Activity 4 – Performance Planning........................................................................................7
Activity 5 – Training on Law for the Hospitality Industry....................................................8
Activity 6 – Briefing on Legal and Ethical Considerations...................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
Books and Journals...............................................................................................................11
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Introduction
International tourism is the tourism that help the people to crosses national borders.
Companies which come under cruise industry aims to serve their customers to travel and stay at
different places. Those customers who are staying outside from their habitual environment but
not for more than one year for business, leisure or any other particular purpose are comes under
this category. This report includes the description about Carnival Corporation & Plc., a British-
American cruise operator that is basically claims to the world largest travel and leisure company.
The company include the basic services of hotel-style accommodation, food, bars, shore pleasure
trip in travel and tourism industry (Aghaei, Naderibeni and Karimi, 2021). The aim of the report
is to develop the different business acumen and to gain experience on the different business
areas. That will include the basic principles of revenue management, importance of the budget
and different financial statements for the general growth in cruise industry. Further, the use of
HR life cycle in the cruise industry and their impact will be discussed in report. In last the report
include performance planning, laws and legal consideration are useful for completing the impact
of travel and tourism industry in UK market.
Part A
Activity 1 – The Key Principles of Revenue Management in the Cruise Line Industry
Revenue management is defined as an idea that is related to maximizing revenue by
identifying precise customer with the accurate place at correct time. Revenue management is
helpful for predict the behaviour of their customer and make strategies that are related to product
availability for optimizing the maximum amount of revenue. The key principles of revenue
management are able to defined pricing strategies and customer centric view (Bondarenko and
et.al., 2021). For example, within the cruise industry revenue management work as a concerned
concepts with analysing financial result with high amount of fixed cost and perishable inventory.
It is used as one of the principle of revenue management because it make the cost effective
strategy in the company. Some of the other principles are related to;
 Different customer must be able to pay different prices strategies from the same services
in the industry.
 The business must have the ability to predict the changing levels of demand in future.
 Only fixed resources are available to sold at any point of time.
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 A perishable inventory of the industry can't be sold after the longer period of time
(Principles of revenue management, 2021).
These principles are related to the cruise industry and interconnected with the different
elements of the revenue management. Just like different customer segment of the industry,
demand forecasting to their customer taste and demand. In addition to those elements other are
related to the use of yield management and having dynamic pricing is helpful for generating the
source in better and effective way.
Revenue management is related to the different pricing strategies that is helpful for
generating the demand. Further, the use of different cost based method to analyse the revenue
and make their high impact on the cruise industry. Cruise line industry is able to use four main
cost differentiated methods that is related to cost, competition, value and demand based methods.
All of these pricing strategies are related to strong impact on the cruise industry (Gupta and
et.al., 2021). For example, Carnival corporation and plc is using competition demand method to
analyse their pricing techniques to use effective revenue management. These are helpful for
generating the sources to complete the basic role of manager within the organisation. These
manager may use the different revenue management tools related to PMS, Booking Engine,
Channel manager and rate shopper.
Activity 2 – The Importance of Budgets & Commenting on Financial Statements and Reporting
Methods
Types of financial statement
Financial statements are the statements that include the useful links for providing details.
This is helpful for using entity and use financial information including assets, liabilities and
shareholder's contribution. There are five type of financial statements are record that include:
Income statements: This report reveal the financial and performance ability to work in
the entire reporting period. This is related to the sales and revenue, P&L and income statement
that are needed to be used for operating and non-operating revenue in the travel and tourism
industry. Carnival corporation is able to make income statement and make a report with revenue
and expenditure statement to analyse their performance.
Balance sheet: This is based on the basic accounting equation and provide a snapshot of
business assets, liabilities and equity (Jamal and Camargo, 2021). It will also provide the
business's financial position at specific point of time. This is related to having effective
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information and based on the important financial ratios and method to complete significant
changes. As per the report of 2020, the respected company faced losses due to pandemic to $10.2
billion (Carnival Free Cash Flow 2006-2021, 2021).
Cash Flow: This is related to work and make systematic changes in financial position of
the company. Further, this understand the position of cash flow form operating, financial and
investing activities. Travel and tourism industry are able to work and make significant aspect for
the growth in managing cost and cash flow statement. Due to pandemic Carniva corporation,
facing issues and loss and they have negative cash balance was $-4,695.00, a year-over-year
(Carnival Free Cash Flow 2006-2021, 2021).
Importance and value of budget
The use of business budget is a dynamic, financial and estimated plan for the growth of
company to anticipated the revenue and expenses for the specified period of time. The use of
realistic budget is the factor that include the sources of revenue, income along with the possible
expenditure for the specified period of time (Kim, Wang and Song, 2021). It will be helpful for
generating the source and make single operational activities for the growth of budget and make
decision as per the different business opportunities in the business activities.
Part B
Activity 3 – Using the HR Life Cycle for Talent Management
The use of human resource life cycle is related to analysing the employee's journey
within an organisation and understand their working structure for completion of future activities.
This process starts from the very first moment they encounter in the company and continuous
until the day they leave. The use of HR Life Cycle is helpful for the company to make effective
structuring the policy and strategies to minimise the impact that comes in employee's ways. The
stages of HR life cycle is related to look forward on high productivity level and providing
valuable input for the growth of an organisation. There are five core stages of HR life cycle, that
explained below:
 Attraction and recruitment: This stage starts when the company is looking for the new
employees and encompasses the organisational brand with employee's overall perception
to the company (Lorente-Bayona, Gras-Gil and Moreno-Enguix, 2021). For example,
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Food and beverages manager should applied different marketing strategies to recruit the
staff for the general team members.
 Induction or orientation: This stage starts, when the employer and employee layout
their prospect to each other. This seems very important for the company to ensure about
new employees should feel inspire, motivated with the company's culture and settle down
with their team members. Here, the food manager is able to provide brief description
about the company and their food policies.
 Career planning and development: Once the employees may settle within the
company, their main focus is on the growth in personal and professional perspective. The
main segment of this stage is to deal with performance management and used appraisal
for motivating the employee to achieve the organisational goals. The employees of the
food and beverages department is plan for getting higher position in their department.
 Retention: There is lots of money invested in the employee life cycle process for each
employee, so it would be helpful for the company to retain them for the longer period of
time (Qian and et.al., 2021). Here, the managers of the respected company should focus
on employees retention and strategies to make them happy.
 Separation and termination phase: This is the last stage as it simply a paper pushing
exercise but at the same time very valuable for the executed the growth of the company in
effective ways. Here, the employees leave the organisation due to the major challenges
face by them (5 Stages of the HR Life Cycle, 2021).
Recommendation
There are different ways for the cruise industry to improve HR practices by using more
effective talent management planning with the help of HR life cycle.
 Firstly, the administrator should appoint good and loyal employees that make effective
growth in the company.
 Second, the HR managers should avoid void promises that they can't actually deliver
(Santos and et.al., 2021).
 Third, Companies should find their best way to retain their employees by providing them
tools, environment and skills to stay in organisation and do their job effectively.
 In last, they should try to do a clear conversation and rectifying the problems of
employees that may promote the positive environment in the company.
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Activity 4 – Performance Planning
The use of HR Life cycle is related to not only motivating the employees and encourage
them for working in an organisation but to improve organisational productivity the most needed
thing is to promote employee's ability and skills. HR life cycle help the manager of the company
to retain their employees for the longer period of time. With the help of right performance
management plan and its implication on the success activities the manager must be able to solve
the issues prevailing in the company. The use of performance management plan is useful for
align the work and knowledge for using strategic objectives and ensure the company's short and
long term objectives in effective manner (Teeroovengadum and et.al., 2021).
Improvement
objectives
Success
criteria
Support
required
Expected
standard of
performance
Review the
success
Objectives
outcome
Resolve the
negative
behaviour of
waiting staff
Try to
improve their
working
environment
and manage
their team
work.
The cruise
industry can
motivate their
waiters and
waitresses for
improving
their
performances.
Stop spreading
rumours and
try to
corporate with
the company
by doing
additional
work.
The success of
the objective
is going
smoothly and
employees are
trying to work
in the
company with
their best
manner.
If the
employees
don’t achieve
the objective,
then it will
lead to high
employees’
turnover.
Low staff
retention
Try to
motivate the
staff by
providing
them monetary
and non-
monetary
Additionally
the leader and
managers
should arrange
the face to
face meeting
with
The expected
result from the
employees is
to perform
within the
company for
longer period
The success
can be review
by studying
the gap in
between
employees
joining and
If this action
plan doesn't
work then the
company face
the high
turnover of
staff.
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benefits. employees and
try to resolve
their issues.
of time. resign date.
Activity 5 – Training on Law for the Hospitality Industry
It is considered that to achieve goals and benefits are needed to formulate the framework
to use and develop the management with tourist activities and based on the UNWTO laws. There
are different laws which are needed to be used within the travel and cruise industry. Some of
them are the travel law and hospitality law. Carnival Corporation and Plc is needed to recognize
the ways to work on the basis of different responsibilities to provide the leadership management
as the responsible global citizen (Thirumaran, Klimkeit and Tang, 2021). The company and their
specific legislation use and helpful for completing goals for the growth of the company. The
carnival corporation and plc is prevailing different legislation to run effectively and follow the
sustainable and legal nature in their industry (van der Sterren, 2021) .
 Travel law: This law is related to contracting terms with the customer and being very
specified authorised by the Carnival. Any jurisdiction opted for provisions that shall be
helpful for work deemed from the contract. Further, no effects of provisions shall remain
herein with the full force of effective constitute contracts.
 Confidentiality act: This is related to make confidential data of their customers to the
others. This legislation within the travel and tourism industry is very effective and
significant for the respected company.
 Safety and security act: The Carnival Corporation is providing the safety issues,
medical facilities are acknowledged to seek medical assistance if necessary in the
respected company. Company's strategies and laws are useful for the reservation and the
need of public health organisation concepts.
There are different acts and law that has the potential to analyse the impact on the
businesses for using decision making criteria in the travel and tourism industry. These laws are
related to company, employment and contract law. These three law are helpful for generating the
activities and work as per the growth and significant changes in the travel industry.
Company Law: Company law is the body of the laws that are governing rights, relations,
companies. It actually encompass the formation, funding, governance and death of the
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organisation. This law is beneficial for the major act and solve the issues of the travel and
tourism industry in the UK. This help in decision making process by enforcing the law and make
legislation decision of the company effectively.
Contract Law: It is an agreement that is rise to obligation which is enforced and
recognised by the law. This will include the three major concern related to basic elements that
will be helpful for making agreement, considerations, and should have a contractual intention of
the two or more parties. This help the Carnival corporation for making decision related to make a
contract with customers and agreed with different conditions like booking, accommodation etc.
Employment Law: It is a legislation that help the employer and employee to make
relationship including different trade unions (Van Rheenen, Sobry and Melo, 2021). For
example, UK employment law is beneficial for the travel and tourism industry to safeguard the
guidelines and include contract act within the organisation.
Activity 6 – Briefing on Legal and Ethical Considerations
There are different ethical and legal consideration that are needed to be solved and make
effective growth in suppliers, customers and manager of the company in effective manner. The
carnival use, the ethical and compliance program are needed to promote the company's structure
and make commitment to achieve and maintain the ethical conduct. The company tries to find
the best ethical and legal consideration for getting higher standard to applied in the mission (Ali,
2021). Using environmental compliance and specified structured are helpful to expertise the
corporate compliance. Some of the legal and ethical consideration are explained below:
 The company is committed different legal consideration that are related to human rights
by the use of human right policies in the year of 2020.
 The company is using 100% of animal welfare audits for encounter the issues that are
related to offering dogs sledding in Alaska.
 There are more than 50% of the animal welfare audits that are helpful in tour encounters
and audit with better connectivity and management (Enhancing Governance &
Compliance, 2021).
 The company is focusing on environmental, health, safety and general compliance issues
that are helpful working with ethical consideration.
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Conclusion
From the above report, it is considered that the travel and tourism company is needed to
be analyse in an effective manner. With the help of key principles of revenue management is
needed to work and make travel and tourism industry within the market. Further with human
resource cycle, it is helpful for travel and tourism company form managing strategies. In addition
to this, managing budget and P&L statement would be helpful for the companies to make
strategies more significantly and in last ethical consideration of travel and tourism help the
company to work effectively.
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References
Books and Journals
Aghaei, H., Naderibeni, N. and Karimi, A., 2021. Designing a tourism business model on block
chain platform. Tourism Management Perspectives, 39, p.100845.
Ali, A., 2021. Technology for Sustainable Tourism. In Encyclopedia of Tourism Management
and Marketing (pp. 1-3). Edward Elgar Publishing.
Bondarenko, S., Rusavska, V., Niziaieva, V., Manushkina, T., Kachanova, T. and Ivaniuk, U.,
2021. Digital Logistics in Flow Management in Tourism. Journal of Information
Technology Management, pp.1-21.
Gupta, V., Cahyanto, I., Sajnani, M. and Shah, C., 2021. Changing dynamics and travel evading:
a case of Indian tourists amidst the COVID 19 pandemic. Journal of Tourism Futures.
Jamal, T. and Camargo, B., 2021. Responsible Tourism Marketing. In Encyclopedia of Tourism
Management and Marketing (pp. 1-3). Edward Elgar Publishing.
Kim, J.H., Wang, Y. and Song, H., 2021. Understanding the causes of negative tourism
experiences. Current issues in tourism, 24(3), pp.304-320.
Lorente-Bayona, L.V., Gras-Gil, E. and Moreno-Enguix, M.D.R., 2021. Internet penetration and
international travel and tourism expenditure: The role of foreign exchange control.
Tourism Economics, p.13548166211027839.
Qian, L., Zheng, C., Wang, J., Sánchez, M.D.L.Á.P., López, E.P. and Li, H., 2021. Dark tourism
destinations: the relationships between tourists’ on-site experience, destination image
and behavioural intention. Tourism Review.
Santos, V., Sousa, B., Ramos, P. and Valeri, M., 2021. Emotions and involvement in tourism
settings. Current Issues in Tourism, pp.1-6.
Teeroovengadum, V., Seetanah, B., Bindah, E., Pooloo, A. and Veerasawmy, I., 2021.
Minimising perceived travel risk in the aftermath of the COVID-19 pandemic to boost
travel and tourism. Tourism Review.
Thirumaran, K., Klimkeit, D. and Tang, C.M. eds., 2021. Service Excellence in Tourism and
Hospitality: Insights from Asia. Springer Nature.
van der Sterren, J., 2021. Sustainable supply chains in travel and tourism: towards a circular
approach. In Handbook for Sustainable Tourism Practitioners. Edward Elgar
Publishing.
Van Rheenen, D., Sobry, C. and Melo, R., 2021. Running Tourism and the Global Rise of Small
Scale Sport Tourism Events. Small Scale Sport Tourism Events and Local Sustainable
Development. A Cross-National Comparative Perspective,, p.249.
Online
5 Stages of the HR Life Cycle, 2021. [Online]. Available through:
<https://www.strategicpay.co.nz/News/x_post/5-stages-of-the-hr-life-cycle-
00178.html>.
Principles of revenue management, 2021. [Online]. Available through:
<https://colbournecollege.weebly.com/uploads/2/3/7/9/23793496/the_travel_and_touris
m_business_toolkit_week1.pdf>.
Enhancing Governance & Compliance, 2021. [Online]. Available through:
<https://carnivalsustainability.com/enhancing-governance-compliance>.
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Carnival Free Cash Flow 2006-2021, 2021. [Online]. Available through:
<https://www.macrotrends.net/stocks/charts/CCL/carnival/free-cash-flow>.
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