Rationale and Principles of Revenue Management in Travel and Tourism Industry

This report discusses the rationale and principles of revenue management in the travel and tourism industry. It explores the application of revenue management tools to generate and maximize profit. The report also covers the different stages of the HR life cycle, performance management plan, special legislations in the industry, and the impact of company, job, and contract law on business decision-making.

The International
Travel & Tourism
Management Business

INTRODUCTION............................................................................................................................3
TASK1 ............................................................................................................................................3
P1 Rationale and Principles of Revenue Management................................................................3
P2. Application of Revenue Management Tools to Generate and Maximise Profit...................4
TASK2.............................................................................................................................................5
P3Different Stages of HR Life Cycle..........................................................................................5
P4 Performance Management Plan.............................................................................................6
TASK3.............................................................................................................................................9
P5. Special Legislations that Travel and Tourism Industry have to follow................................9
P6 Consequence of company, job and contract law on business concern decision-making.....10
TASK4...........................................................................................................................................11
P7 Various Kind of Financial Statements and Reporting Mechanisms....................................11
P8 Value Budgets for Controlling Business Performances and Identifying Variances............11
CONCLUSION .............................................................................................................................12
REFERENCES...............................................................................................................................13
BOOKS & JOURNALS ...........................................................................................................13

INTRODUCTION
The activity which is related to traveling, entertainment, tourist, accommodation and
maintains customer services are called as travel and tourism, this industry is very vast and cover
different aspect of global tourism. Which are managing accommodation, tourist attraction, food,
transport, leisure and planning of trip all these Factors are included in it, this report is consist of
study on cruise line sectors which ids surrounded by number of factors effecting it. This report is
separated into three tasks which have sales, budget and revenue management, human resource
strategy and morals & regulation in travel and tourism .
TASK1
P1 Basis and Values of Revenue Management
Concept of revenue management: It is that process which is used by firm for using its
profits in proper way which help it in getting maximum benefit and play important role in
anticipating future efforts of firm. This function also ensures management of inventory in
without effecting price availability in long run.
Principles of revenue management within travel and tourism industry:
 Market Segmentation:
Market segmentation is the prime standard of revenue management. This is the process of
segmenting the market and identifying some opportunities for firm to use its marketing function.
This can be used by carnival cooperation in finding its potential customers by diving its market
and making it according to firm’s services. This will also decrease wastage of resources of firm.
 Demand Forecasting:
Second principle in revenue management is forecasting the demand. This will aid firm in
identifying the demand of tourism within the industry and attracting them towards firm. This
method can help carnival cooperation in making good plans for their potential customers for
identifying new opportunity (Ukpabi and Karjaluoto, 2017). This is important part of origination
as it forecast different aspects which can act as threats origination performance. It helps in
gaining advantage of effective inventory management.
 Overbooking Control:
The problem of overbooking arises when there is season of holiday because this because
every individual plans for visiting destination. This principle associated with dealing this

problem as this is the main reason behind lack of interest of people when site of destination crack
or increase in number of people on the destination.
P2. Tools of Revenue Management to Produce and Take full advantage of Yield
Number of revenue management tools can be applied to cruise line sectors for regular
incoming of profit and maximising firms wealth. Some of the tools of revenues management are
mentioned below with their explanation and implementation:
 Capacity Utilisation:
Capital utilization tool is the first one which is used for managing revenue of firm for
maximizing profitability. For running company assets and its operation this tool works more
effectively indirection of goals (Spencer, 2018). This function works till the overall objectives of
organization not achieved. In curies line industry this tools can work as providing firm the
opportunity of zero cancellation policy which help individual in utilizing its fuller capacity. Firm
can also use this tool as their main future to identify there capacity.
 Discount Allocation:
This tool is used by firm when it wants to sell its extra features to customer than it
provide discount to its customers on that services. This function is possible because the nature of
carnival cooperation where customer can easily influence with the help of discounting. This can
also use by carnival cooperation where firm can give discount on its services and can attract large
number of customer to their industry. It can help firm in enhancing market share and customer in
their benefits.
 Duration Control:
This is done with for increase the profitability of origination in which the limit of
accepting reservation is managed. This aid firm in managing the perfect space for its customer.
this al is done to eliminate the state of confusion and dissatisfaction among customer. Carnival
cooperation have their separate counters as well as department of this management which help
them in bringing out from this problem with increased profitability.
After the use of management tools , Thomas cook have right to use many other tools and
also get help of information technology and this tools will also help firm in getting online station
execution.

TASK2
P3Different Phases of Life Cycle of HR
It is that life cycle which is related with those set of plans and procedures that are formed
for human resources management of a firm that will divide whole activity of this department in
small parts for better implementation. In a carnival cooperation there are number of activates
which came under this department and all activity are performed with full utilization of
resources. Here manger of this firm acts as plan implementer and perform specific roles within
origination for betterment of this cycle. It has several stages which are disused in underneath:
 Attraction:
This function is performed for introducing customers towards barn image and product
with the aim to increase the sale of product that’s why this is the first function in HR lifecycle.
By making the customer friendly with the brand od origination carnival cooperation is make plan
for benchmarking of company in this rapidly changing and dramatic business environment this
have number of methods which can be used to attract customers towards origination and perform
various function in organizational context
 Recruitment:
This is the process of recruiting or hiring new person in the origination where they can
help in workforces planning of firm and can become the part of firm for utilizing their resources
and achievement of firm’s goals and objectives. There is appropriate plan for recruitment of new
people within the carnival cooperation and getting access to number of firm products. This will
also aid firm in meeting its staff requirement. Customer has also various benefits of these as for
their management there will be more staff.
 On boarding:
This is the formal introduction of new recruited employee form the work and work place
of origination from where it have to work and what it have to work . The entire topic related to
this will disused here. There is major benefit of the part of cycle are carnival cooperations can
help there employee to know about the work place where they have to work. This also helps
industry I getting access to number of function like management of work, etc.
 Enablement:
This is explanation of the stated which is performed in upper meth. Here the induction
process is taken to next level where employee is used to introduce to all other with the help of

big function or a get together. This function help carnival cooperation’s in making their customer
happy and satisfied with the services company is providing to its customers (Pulido-Fernández
and Rodríguez-Díaz, 2016).
 Development and Retention:
This stage which provide training to the staff of origination for their development and
retain in origination. Here are many methods and techniques which firm can use as the way to
train there its employee for increasing their skills and to boost their motivation and bring
effective performance in their working. Carnival corporation can use this function in there
management for boosting performance of its employee as well as profit maximisation as decrease
in employee turnover ratio because of retention of employee in firm.
 Separation:
Separation is the last stage in life cycle of firm where firm have to meet the obligations
of its employee because of retirement are leaving job for better pay. This is the last step and after
it the cycle will flow in the direction of first stage. Here carnival cooperation can use the benefit
by taking leave interview from its employee and can get the reasons behind the end of job of
employee.
Importance of HR Life Cycle in Retaining and Developing Talent
For retain and development of talent in origination this is the foremost function this is
because it helps firm in dividing whole human resources function in sell and different stages
which facilities firm in getting competitive market and recruit and select qualified persona in
origination there is also a management of firm which is used to debt access to new an d more
potential market where firm can use its resources in getting more talented employee . it have its
main focus on strategies for improving the performance of employee which aid firm in bringing
more competence in employees of origination. There is number of items which firm use as there
tools for developing talent and all these re the part of which make it more important like firm
carnival cooperation.
P4 Plan for Performance Management
Performance management plan is the set of idea and calculation which is done to measure
the performance of employee in origination (Ormond and Sulianti, 2017). This performance is
measured with the help of pre-determined standards which are seated by the manager of firm .
for the carnival corporation performance management plan is stated below:

GOALS CURRENT
COMPETENCY
TARGETED
COMPETENCY REVIEW TECHNIQUES TIME
Ethical
Decision
Making
60 100
Review of
presentation in
this ability
would be
assumed by
Instant
Director
There is
arising in
negative
behaviour
because of
lack in
strategic
decision by
manager and
for solving
this problem
there must be
seminars and
conferences
which can
help manager
in taking good
business
decision.
1.5 Month
Critical
Thinking
60 100 Elder Manager
would
commence
review in this
concert.
To ensure
effectiveness
in
performance
standards,
Workshops
would be
conducted,
with special
emphasis on
3 Months

creating mock
determine,
will enhance
manager's
thinking
quality, thus,
inducement
optimistic
behaviour.
Conflict
Management
40 100 Training
consultant
should review
this function
It is the issue
which have its
major
importance in
organisation.
For ensuring
the
effectivenesse
s in
management it
is mandatory
to provide
effective
training to the
manager of
firm which
help in getting
access to new
market and
survive in
dynamic
6 Months

environment.
For ethical working and decision-making practices , firm needs to enable its employees
and use proper strategy it will promote the satisfaction in mind of consumers. This will increase
the performance level of employee which help them in handling difficult task(Morrison, 2018)
. Training and development also facilitate firm in getting access to new market and provide
opportunities to employee for their personal growth and increasing their performance standards,
which ensure them growth of their carrier in context of organisation like carnival corporation.
TASK3
P5. Special Legislations that Travel and Tourism Industry have to follow
This is the ethical and legal frameworks which is required the legal requirement by law
and governance of the nation where firm is working. These frameworks are designed for firm
that it can work at fuller efficiency by compiling with laws. These laws are meant for using the
resources in effective manner and saving the interest of nation, society and employees of
organisation . There are several case registered with WTO, about the unethical practices with the
consumer of industry as well as with low. For saving this and minimising the impact of this some
legal institutes taken a action in form of legal laws and rules. Some of the act are disused below
which are related to business of carnival corporation:
 Environment Act, 1995: This is the act which is formed for protection of environment
from hazardous waste which human being produce when they wise ant destination . It is
in form of plastic bottle, or other thinks which are meant for human satisfaction but have
different number of negative impact on firm. These are formed because of rising climate
issues like global warming, which can cause negative impact on various destination. For
example depletion of Taj Mahal from white to yellow and melting of glacier in pacific
region. Carnival cooperation should also care about its product and help environment in
survival
(Mohammed Abubakar, 2016).
 Consumer Rights Act, 2015: This act is prepared for protection customer from unethical
practices of business units. This includes the will full fraud by business enterprise by
cheating its customer . This act provide same right to consumer like right to safety,
product, quality, and many more . Carnival cooperation can use this function as the part

of their organisation by following all the guidelines given in this act. This will also help
firm in building a sound image of firm in mind of customers. It will also access firm in
making its goodwill in market by using ethical practice in its functional.
P6 Consequence of company, job and contract law on business concern decision-making
This are those rules and regulation which are formed within the industry and have
important role in management of firm by fulfilling the needs of customer and legal requirement
of national laws same are the impact of this mentioned below: Company Law: For regulating the organisation within nation there is various laws and
company act ,2006 is one of them . This can help the carnival cooperation and cruise line
industry in regulating its business operation . This can be achieved with the help of this
law by effective implementation of this on organisation. This law will guide firm in
cooperate governance of organisation and will increase the chances of success in
operation of firm . This will also build image of firm in mind of government that it is
doing its business in proper way. Employment Law: This is the law which have main objective is to ensure sound
relationship between manger and its subordinate or employer and employees. It help both
in execution of their rights within industry and can achieve the per determined objective
of firm. In context of carnival cooperation this have number of benefits to firm as it can
coordinate with its employee in identifying the needs and managing full working of
organisation.
Contract Law: In tourism industry this work as the major impactor on firm profit and working
conditions this is because as it incudes bot buyer and seller of product. This law states that there
is contract between buyer and seller of product which have to be fulfil some condition, if it will
not follow the conditions related to contract than it will be void contact. This law is made to
ensue that both the parties will enjoy the benefit of ethical practice (Iversen, Hem and
Mehmetoglu, 2016). For instance , in carnival cooperation this will work as providing services to
there customer on the basis of contact and follow up all the requirements.

TASK4
P7 Various Kind of Financial Statements and Reporting Mechanisms
Financial statements of the company are those tools which show the finical position in
specific time period (El-Gohary, 2016). This shows how the company is working, some of the
tools are disused below which can be used by carnival cooperation in there working:
Income Statement: This is the statement which shoes where the firm is standing in this
environment means the profit or loss of the firm after completion of one financial year. This can
be said as the statement of company which shows the summary of transaction of firm in whole
financial year. Carnival cooperation also made there finical statement in form of trading P&L
and balance sheet. This help firm in showing all the details of its operation to the investors and
attracting more customer in firm. This also help firm in finding overall profit and growth in
periods financial year and manage growth in next financial year (Camilleri, 2018). Cash Flow Statement: This is the statement which is used to show flow of cash in firm.
Carnival cooperation can use this function for finding cash flow in there organisation and
use it as managing liquidity in firm.
 Balance Sheet: Balance sheet is the whole summary of firm which act as the conclusion
of all financial transaction which are recorded in monitory terms. This can be use by firm
in getting access to its assets and liabilities and major changes in firm.
There are respective reporting mechanisms of these statements that are discussed below:
 Real-Time Information: For knowing the present situation of firm in market. Here
firm can use real time information system in its organisation for presentation
organisation in top front of market.
Transparency: All the message and projections within these statements offered by carnival
cooperation must be crystalline, with each and crucial aspect highlighting and calculated
ethically and impressive (Aslan, 2016)
P8 Value Budgets for Regulatory Business Presentations and Identifying Changes
Certain of the facts reflecting its importance are mentioned below: budgeting is that
process which a firm follow when it needs to identify expenditure estimate and know how can it
minimise its expenditure on wasteful activities. The important points in budget of carnival
cooperation are discussed below:

 Profitability is an important part of firm and help it in estimation its revenue with the help
of budgetary planing.
 Furthermore, performance of business organisation could also be echoic using budgets as
it controls priorities of enterprise.
 Strategic planning of organisation is the important point in this which ensure the
allocation of budget of firm.
Variance in organisation is the difference between the actual performance and per sated
standards(Abou-Shouk and Khalifa, 2017). The variance in business performance also identified
by the budget function. There are some point mentioned below which explain the variance of
budget:
 Carnival cooperation is dealing in tourist industry where it compare the actual
performance with the standards which are by top level management here firm identify
variance in performance and take corrective action if it is required in variance . This
variance can be positive some time because of unexpected performance or setting up
easy standards.
Budgets such as cash budget and sales budget are also prepared to ascertain variances
between actual and budgeted revenue in order to effectively behaviour revenue management.
CONCLUSION
From above stated report it can be identified that firm have number of impact which can
be identified within the industry. This is because there is huge amount of profit in firm. Firm
have to make its plan according to needs of customer and identify potential customer in market.
Financial tools and budgetary control have their major impact on firm as it help the industry in
getting access to new marketplace and performing its operations.

REFERENCES
BOOKS & JOURNALS
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purchasing behaviour and e-loyalty: a comparative study of Egyptian travel agents and
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Tourism, 19(12), pp.1176-1184.
Camilleri, M.A., 2018. Tourism supply and demand. In Travel marketing, tourism economics
and the airline product (pp. 139-154). Springer, Cham.
El-Gohary, H., 2016. Halal tourism, is it really Halal?. Tourism Management Perspectives, 19,
pp.124-130.
Iversen, N.M., Hem, L.E. and Mehmetoglu, M., 2016. Lifestyle segmentation of tourists seeking
nature-based experiences: The role of cultural values and travel motives. Journal of
Travel & Tourism Marketing, 33(sup1), pp.38-66.
Mohammed Abubakar, A., 2016. Does eWOM influence destination trust and travel intention: a
medical tourism perspective. Economic research-Ekonomska istraživanja, 29(1),
pp.598-611.
Morrison, A.M., 2018. Marketing and managing tourism destinations. Routledge.
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Malaysia on South–South intra-regional medical travel. Current Issues in
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Pulido-Fernández, J.I. and Rodríguez-Díaz, B., 2016. Reinterpreting the World Economic
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Spencer, A., 2018. Travel and Tourism in the Caribbean: Challenges and Opportunities for
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Ukpabi, D.C. and Karjaluoto, H., 2017. Consumers’ acceptance of information and
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pp.618-644.
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