The Travel and Tourism Business Tool Kit : British Airways

The Travel and Tourism
Business Tool Kit

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Definition of yield and revenue management.............................................................................1
Rationale and principle of revenue management........................................................................2
Applying revenue management tools..........................................................................................3
Impact of differential pricing strategies......................................................................................3
PART 2............................................................................................................................................4
PART 3............................................................................................................................................4
PART 4............................................................................................................................................5
References........................................................................................................................................8

INTRODUCTION
Travel and tourism industry is very large service industry which is related to act of
travelling to various locations either for pleasure or business purposes. It has become one of the
largest civilian industry of the world as per the statistics as one out of 10 person forms the part of
travel and tourism industry. Travel and tourism services includes food and drinks, lodging,
transportation etc. In this report British Airways is taken as an organisation, which is airline
company of UK which has got its headquarters at Waterside, Harmondsworth. Present report
discusses the key principles of managing the revenue of travel and tourism industry also, this
report includes managing Human Resource life cycle. This report also discusses the potential
impact of legal and ethical consideration on the business and managing of budgets and
maintenance of financial and statistical records within the organisation.
PART 1
Definition of yield and revenue management
Yield management can be defined as variable pricing strategy which is based on the
understanding as well anticipating and influencing the customer behaviour to gain more revenue
and profit from fixed or limited resource for example airline seats bookings. It simple terms yield
management is when a company prices its products or service in order to make most money by
offering the right price at the right time (Dzhandzhugazova and et.al., 2016). It is very common
tactic which is used within the travel and travel tourism industry in order to gain profits. With the
help of yield management British Airways can focus on optimising its selling and pricing
strategy for their single most important resource which is booking of airline seats.
Revenue management can be defined as applying disciplined analytics that helps in
predicting the behaviour of the consumer in the micro-market levels and maximising the product
availability as well as maximising the growth of the revenue. Revenue management in Airline
company can be very tactical but is an essential tool for the company. So, British Airways with
the help of this tool can gain a competitive advantage over others. Also, with the help of revenue
management British Airways can manage their various revenue models like subscriptions,
products and services and help in generating more revenue for the organisation. Revenue
management also allows the company to be more consistent across the different channels and to
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