Introduction to The Travel and Tourism Business Toolkit: Assignment

`
The Travel and
Tourism Business
Toolkit

INTRODUCTION
Travel and tourism world's leading and fastest growing industry generate high amount to
revenue. It include of various set of activities in which individual travel and stay in places other
than their usual environment (Bayliss, 2014). Former large commercial industry is growing their
business rapidly with a motive to gain large sum of profit and aid government to increase its
economy along with satisfying need and requirements of customers. Present case study has
been conducted on British-American cruise operator, Carnival Corporation & PLC. Organisation
offer different types of product including, food, bars, events, shore excursions, travel and tourism
services, entertainment, accommodation and more. Carnival Corporation draw the attention of
nearly 11.5 million guests in an annual manner with offering their services to more than 225,000
cruise guests around the world. In this report discussions has been made on, revenue
management rational and principles. Present report also cover different types of HR life cycle.
Along with this different types of legislations and performance management plan is also included
in this report. Lastly, report include essentialness of budget along with financial statements.
P1 Revenue management rationale and principles related to travel and tourism
It is related to manage and control the cost as well as benefits of a sector across the whole
wide world. In context with, Carnival Corporation & PLC management of revenue within the
industry of travel and tourism is mainly linked with best form of effective measurement of
benefits as well as cost within accommodation overbooking and cruise all around the globe.
Revenue management include effectively evaluation of ADR, standard rate and availability of
services in order to gain more revenue. In relation to this, Carnival Corporation & PLC finance
manager is required to focus on their cruise services, accommodation, entertainment, food, and
more to gain more profit base. Along with this, by anticipate costumer behaviour and by optimal
accessibility of services and product also aid Carnival Corporation & PLC to maximise their
overall rate of revenue.
Revenue Management Principle and Rationale
 It is effectively benefit in creating new products, servicing and attractive pricing range
with the help of which company can effectively able to conduct its business operations.
 Revenue management plan benefits in decreasing cost that is basically associated with
long-standing rating tactics (DeLacy, 2014).

Mentioned below are some principles which is related with the travel and tourism industry in
order to manage the revenue:
Market Segmentation:
In market segmentation, consumers are mainly segregated into suffice and non-qualifies
and this partitioning is basically founded upon elements and factors of customers in order to
increase revenues. This segmentation benefits Carnival Corporation & PLC to maximise its
merchandising and net income.
Booking Patterns and Historical Demand:
As per this principle of Carnival Corporation & PLC, it has been analysing and
examining that the historical data might effectively able to formulate programme in order to
properly stimulate their booking plan. This will benefit company to consider actual demands,
needs and requirements of consumers in order to enhance the profit margin of the company.
Overbooking:
It is the principle which is related to offering more amount of reservations beyond a
entire capacity. This process can establish to be impelling when cancellations are made by
consumers. Main motive behind this is to boost up level of overbooking in order to increase
revenue and reduce estimated amount of risk related to refused service.
Revenue Management Tools
Discount Allocation:
With the help of this tool, Carnival Corporation & PLC provide specific range of
attractive schemes which includes discounts, coupons and many more to their potential
customers and new guest. They can offer discounts to their customers while booking in advance,
this will simultaneously aid them to increase their overall margin of sale. Company can also offer
discount schemes in a seasonal manner as to attract new customers form different geographical
locations.
Capacity Utilization:
In a cruise there are certain fixed number of available capacity which is required to be
properly utilized by Carnival Corporation & PLC in order to generate maximum revenue. It is
important for company general manager to properly evaluate reservation capacity in cruise in
order to offer facilities to all of their all customers in best effective manner. For example, if

Carnival Corporation & PLC is having capacity of total 150 passengers on their ship then it is
essential for them to utilize all that 150 seats as to effectively utilize their capacity.
P2 Application of different types of revenue management tool within travel and tourism industry
as to gain profit
There are different kind of sector within tourism and travel industry namely, tourism
services, events and conferences, travel trade, accommodation, food and beverage etc. in order to
remain in competition and gain more advancements and growth it is essential for Carnival
Corporation & PLC to effectively manage functions and operations of all of there sector.
Mentioned below there is an brief description of Carnival Corporation & PLC food and beverage
sector in which revenue management tool is applied as to gain more profitability:
Food and Beverage industry of Carnival Corporation & PLC:
There are different types of industry including in travel and tourism industry such as,
bars, pubs, clubs, fast food, fine dining and lounges. Food and beverage industry is one of the
largest growing industry in travel and tourism sector (Hunt, 2015). This sector not only satisfies
needs of consumers but it also employee large number of individual which lead towards
economic development of a country. As to effectively maintain food and beverage sector within
Carnival Corporation & PLC. Revenue manager hold great responsibilities as well as
importance. With the help of this company can effectively able to increase overall organisational
profitability. In addition with this, with the application of revenue management tool organisation
can able to take advantage of Review Score Tracking too in order to increase profit in best
effective manner.
Food and beverage sector of Carnival Corporation & PLC offer wide range of
scrumptious food offerings to their customers as to satisfy their needs in best effective way. But
to remain in competition and keeps on fulfilling demand of customers in this dynamic
environment Carnival Corporation & PLC revenue manager by taking benefit of review rating
tracking which simultaneously acts as an key driver for there growth. In this they offer their
guest a facility in which guest score them on the basis of products and services provide by them
and of their experience. Hence, in order to gain positive revenue Carnival Corporation & PLC
have adopted certain measures like, they interact efficiently with their guest and provide Wifi
landing page along with free postcards and maps as to gain remarkable score rating form their

guest. This will benefit Carnival Corporation & PLC to increase their market share and
maximise their overall rate of profitability.
M1 Pricing strategies impact on revenue management
Differentiated pricing strategies defined as the various prices into marketplace that
depends upon several factors like geographic area, external environment etc. The differentiated
pricing strategies upon revenue management of respective firm get impacted in both manner
positively and negatively. The positive effects can be targeting large marketplace, enhancing
revenue on manufacturing etc. Where as negative impact is reducing brand value and
discrimination.
According to the view point of Hunt (2015), the principle of revenue management are
forecasting, monitoring and controlling. Forecasting aids respective firm to forecast their revenue
in respect of future perspectives. Monitoring, this principle of revenue management aids
Carnival Corporation & PLC to maintain overall records as well as information into systematic
manner for attaining success. Controlling help them to control whole activities related to cost ,
examine effective available rate, value of last seat and so on.
The specific application of revenue management are: Market segmentation: According to the airlines, consumers might be categorised into two
segment which is non-qualified and qualified for enhancing revenues.
 Supply and Demand forecasting: Forecasting demand and supply help travel and tourism
industry such as Carnival Corporation & PLC to influences their revenues.
P3 Various phase of HR life cycle as well as importance for developing and retaining talent
Human resource have different and unique life cycle where there are numerous set of
stages involved (Lamsfus, 2015). Each and every stage have their own benefits, opportunities
and challenges. Mentioned below there is an breakdown structure of Carnival Corporation &
PLC life cycle of HR in which its is required to take necessary steps to solve problems and issues
as to continuously grow business:
Recruitment:
It is a formative process which consist hiring of appropriate and right individual for right
job. It is the role which plays very essential part which can effectively increase the turnover,
productivity as well as growth of the company. In context with this, it is necessary for Carnival
Corporation & PLC to set strategies and policies in order to recruit highly skilled and efficient

Food & Beverage Manager on their Cruise Ship. For this company is searching for individual
for a role of Food & Beverage Manager who is having excellent command in English as
company offer their services worldwide along wit cruise ship experience and equivalent
education degree in Hospitality management
Education:
It is a fundamental process in which appropriate education is provided to employee just
after their started their role in new position. In context with this, Carnival Corporation & PLC
have formulated certain strategies in which they provide their hired candidate with proper
knowledge of their actual job role, responsibilities and expectations along with this company
provide knowledge to Food & Beverage Manager about cruise culture and values as to increase
their future efficiencies.
Motivation:
In order to raise turnover rate of an organisation motivation factor acts as an best
effective tool in order to strengthen its workforce which automatically lead towards high end
profitability of company. In context with this, Carnival Corporation & PLC is required to offer
proper engagement of their Food & Beverage Manager in regular meeting on cruise boards and
and provide them attractive benefits and compensations as to keep them motivated.
Evaluation: In this it is required for Carnival Corporation & PLC to effectively evaluates
performance of their Food & Beverage Manager and offer them required on board cruise training
and development measured as to increase level of their performance.
Celebration:
In the life cycle of HR, it comes under the fifth stage which is essential for an
organisation to reenergize the staff and thank them for their hard work. In context with this,
Carnival Corporation & PLC adopted a strategies in which they offer extra paid time for their
Food & Beverage Manager in order to empower them and appreciate their sense of
responsibilities.
All these steps effectively aid Carnival Corporation & PLC to generate sense of
belonging and being valued among employees which benefit company to retain their employees
for long duration of time and generate more productivity.

P4 Performance management plan
In order to perform objectives and activities in well effective way it is important for a
company to formulate proper performance management plan in order to overcome future
challenges and gain more prosperity. In this context, it has been seen that there were many
problems faced by waiters and waitresses on cruise line of Carnival Corporation & PLC. Many
their employees in food & beverage sector is facing problems regarding to working conditions
refusing to take additional tasks and resist to cooperate with company team leaders. This lead
towards concerned feeling among management professionals and they mainly worried about
their high rate of turnover. For this Carnival Corporation & PLC framed performance
management plan which is described below in brief:
Assess current performance management process:
In this factor, it is important for Carnival Corporation & PLC to determine actual
strength of their organisational structure including man, material and resources and analyse
current prevailing management process along with this it is essential for company to set their
mission in order to effectively achieve goals and objectives.
Set objectives and Goals:
After identifying mission it is required for Carnival Corporation & PLC to frame goals
and form team as to determine full potential of their employees. Company by generating
meaningful collaboration and conversation in between employees and managers can effectively
maximise performance of their employees while ensuring fulfilment of goals in best effective
way.
Create an action plan:
After defining the goals next and most important stage of Carnival Corporation & PLC
is to consolidate perspectives and develop formative action plan in order to widen the scope of
company performance (Chang and Chih Huang, 2014). Company segregated each of their cruise
employees roles and responsibilities in a break down manner and allot individual goals as to
fulfil objectives of company.
Keep track of progress:
It is one of the most important step in which effectiveness of plan is evaluated. It is
required for Carnival Corporation & PLC to monitor performances of their cruise employees
including workers of food and beverage sector and review their productivity in order to find any

gap and assist them in timely manner as to acknowledge the problem in best effective way while
ensuring completion of goals in effective way.
All these activities will effectively able Carnival Corporation & PLC to resolve problems
in both negative and positive manner. This will benefit company to engage each of their
employees within food and beverage sector including waiter and waitresses. This stimulate team
growth and reduce work pattern which aid towards effective retention of their staff. Along with
this by giving actual recognition company can calm their frustrated employees and retain them
for long time.
M2 HR life cycle importance
HR Life cycle is crucial for firm for managing the talent as well as overcoming problems
of staff retention as this aids respective company to recruit the talented employees through
making effective strategy, finds the staff who works at higher level and others. Moreover,
through this they can able to evaluate employees for professional development and attain desired
goals. Also, helpful them to celebrate employees opportunities and facilitates rewards
consequently.
This is recommended that HR life cycle is an essential part of firm as this will aids them
to recruit new staff for company. The manager of Carnival Corporation & PLC has to face issues
in respect of staff retention as most of the waiters and waitresses have complained regarding
working conditions, refusing to perform extra work etc. so staff turn over are enhancing within
respective firm. Therefore, it have to hire new talent. Within every steps of human resource life
cycle, manager can evaluate the all phases as well as try to develop new talent and work
conditions. At the step of recruitment, they have to formulate effectual strategy as well as
interview protocol according to the needs. In education, it have to facilitate whole ethical value
that are essential for firm as well as facilitated voice mails. In motivation stage, they involve with
staff as well as identify that workers who perform at higher level. Thereafter, evaluate workers
for professional improvement and aids them to reach for expected objectives. At last celebrate
opportunity of staff as well as reward them accordingly.
P5 Essential legislation that is required within travel and tourism industry
Every industry perform their work within proper set of regulative framework. In context
with this, mentioned below there are some legislation and regulation which is required to be

adhered by Carnival Corporation & PLC as they perform their activities in travel and tourism
industry:
The Tourism Act 2011: The tourism and act No. 28 of 2011 established with a purpose to
manage, develop, market and regulate activities with tourism related services. This law is
important to be adhered by Carnival Corporation & PLC as to regulate their cruise operations in
all around the world in best appropriate legal way.
Food Safety Act 1990: This law provide a framework in which provide food legislation.
In this elements related quality, labelling and safety of food and beverage in covered. As
Carnival Corporation & PLC is offering numerous range of food and beverage services in their
cruise therefore, it is essential fro them to adhere their law in order to fulfil requirements in best
effective way
P6 Contract and employment law impact upon decision making procedures within travel and
tourism sector industry
Employment as well as contract law effectively affect on decision making process of
Potential impact of Carnival Corporation & PLC performing there services in travel and tourism
industry. All the rules and regulation covered in travel and tourism is required to be adhered by
Carnival Corporation & PLC. These laws and regulations impact on decision making process of
company. Proper adherences of these law aid company to performance their operations in legal
and ethical manner.
Regulations, legislation and standards are essential for travel and tourism industry for
operating the business effectively and its decision are developed through individuals instead of
firm (Cohen, S, 2017). The decisions related to objectives, culture, incentives and others.
 Trade description act, 1968: Herein, a firm facilitates whole information as per the
customer needs. They do not mislead regarding its services and products as well as
providing authentic sites that are performing all the time. For example: Carnival
Corporation & PLC take care of its consumers effectively as well as facilitates whole
information that they required. So, this is advantageous for travel and tourism as this will
impact their image and grab the attention of more consumers.
Rules, laws and regulations impacts on Carnival Corporation & PLC decision making
process. These are all interrelated to one another as principles are set as per the whole rules and

regulations. This will comply through respective firm for attaining success as well as to sustain
for longer period within travel and tourism industry.
P7 Distinguish forms of financial statements
Financial statements are of numerous types that depicts company performance and are utilized
by lenders, management , creditors in order to find the efficiency of business:
Income statements: It is the part of financial statement include actual performance of
Carnival Corporation & PLC. This statement is issued by public company which shows major
important aspect of company financial performance (Budeanu, 2016).
Balance sheet: This statement cover overall cash in flow and outflow of Carnival
Corporation & PLC in a reporting time period. Cash flow of the company is categorised into
three different parts including, investing activities, operating activities and financial activities.
Evidence of changes in equity: Within this all the related changes that takes place in
within equity shown in time period of reporting. It further covers purchase of share, issues
dividends and profit and losses.
P8 Importance of budget to control performance of business
Effective as well as proper budget benefits an organisation to perform their services in
best effective way without facing any type of future financial hindrances. Some of the key
important factors of budget are as follows:
 Budget acts as an one of the key important element for Carnival Corporation & PLC.
This aid organisation to prepare their financial statements in best effective manner by
analysing all the aspects. In addition with this, it will help company to easily overcome
with any type of financial turmoil.
 Proper Budget benefits Carnival Corporation & PLC to have an eye on each of their
sector including, food and beverage, accommodation and more.

M4 Interpretation of financial statements

According to the financial statement and reports of the firm within Carnival Corporation
& PLC, so their business performance are revenues in year 2018 is $18,881. operating cost and
expenses is $15.556 so, the operating income is 3,325. the net income is $3,152.
CONCLUSION
As per the defined project this is being defined as travel and tourism business toolkit acts
as a key essential element with the help of which business organisation can effectively able to
increase their overall profitability. This report, also include revenue management plan that aid an
organisation to effectively manage organisation resources. In addition with this report covers
required laws and legislations which is needed for travel and tourism industry to abide.

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