Travel and Tourism Business Toolkit

This project provides a comprehensive toolkit for businesses in the travel and tourism industry. It covers key aspects of HR management, performance management, legal and ethical considerations, revenue management, budgeting, and financial reporting. The toolkit includes practical examples and case studies to illustrate the application of these concepts in a real-world setting. Desklib provides past papers and solved assignments for students.

The Travel and Tourism
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
Different stages of HR cycle for talent management..................................................................1
Importance of human resource cycle stages for talent management ..........................................2
ACTIVITY 2....................................................................................................................................3
Performance management plan...................................................................................................3
ACTIVITY 3 ...................................................................................................................................5
The company, employment and contract law has a potential impact on business decision
making.........................................................................................................................................5
ACTIVITY 4....................................................................................................................................5
Legal and Ethical Considerations for Carnival UK....................................................................5
ACTIVITY 5....................................................................................................................................6
Principles of Revenue Management and their Application to the Cruise Line Industry............6
ACTIVITY 6....................................................................................................................................8
Importance of budgets for controlling business performance and identifying variances...........8
ACTIVITY 7....................................................................................................................................8
Financial Statements and Reporting mechanisms.......................................................................8
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Travel and tourism sector contributes well in development of economic condition of UK,
over a period of time this industry has increased employment opportunities in the nation to great
extent. Carnival Corporation & PLC is a British American cruise operator company which is
currently the world largest leisure travel company. The study will discuss the HR life cycle for
talent management, importance of HR cycle stages for talent management, performance
management plan. Further it will discuss financial performance of Carnival UK and will compare
its performance with competitors. In addition, study will explain principles of revenue
management. Importance of budget will be described in this report.
ACTIVITY 1
Different stages of HR cycle for talent management
The human resource cycle or employee life cycle is a concept of HR (human resource)
management which describes the different stages which an employee goes through when
working with a particular company and the roles they play at each stages (Reino and Hay,
2016). There are mainly 5 stages in Human resource life cycle which are discussed below:
 Recruitment and On-boarding : The key to a successful business is hiring the right
people at the right time, the recruitment decision have a direct impact on the company's
or business growth, turnover and productivity. Carnival corporation & PLC is currently
using indirect method in its recruitment process for selecting the food and beverages
manager for the cruise, this method includes advertisement in the news papers, on the
television and radio, in technical magazine etc.,this has the advantage that the
organisation get a pool of employees to their doorsteps and the disadvantage of this
method is the organisation would not have much qualified and skilled employees as
they're not using direct method (Lamsfus and et.al., 2015).
 Level of education: The carnival corporation & PLC provides the new employees with
the guidance of rules and responsibilities and the expectations the organisation have from
them. The company chooses off the job training for training and guiding the employees
such as role play, management games, lectures etc. The advantages of this method is it
reduces the chance of production error, Large number of employees can bee trained at
same time, this training need less amount of time whereas the disadvantages are they're

unfamiliar with the actual work scenario, expensive, lack of feedbacks etc (Alonso-
Almeida and et.al., 2018).
 Motivation: The turnover rate is highest during 1st Ninety days if the leader and
managers are able to develop connection with the new employee and makes a bond with
them. Carnival corporation & PLC company motivate their employees by rewarding them
by providing incentives, this could help the employee to get satisfaction towards their
work and increase the staff retention and the disadvantages could be, that the managers
could leave the job when the incentives are not paid for any reasons.
 Evaluation: Evaluation stage is the most important stage as it enables the supervisor to
measure the performance of employees and the feedback given to the mangers. Carnival
corporation & PLC uses self evaluation and review technique in which the employees are
asked to evaluate their own performance by using a form that needs multiple choice
answers etc. The advantage of this techniques is that the employees could compare the
self evaluation to their own appraisal and understand the discrepancy , the disadvantage is
that the employees could answer wrong in the form (Sigala, 2017).
 Celebration: The employees should be appraised for their hard-work and contribution in
the business, the Carnival corporation & PLC reward their employees by giving them gift
vouchers, gift hampers, recognition and appraisal, thus this techniques could increase the
motivation level among the employees.
Importance of human resource cycle stages for talent management
The human resource cycle plays a crucial role in developing and retaining the employees.
Every stage has its own importance in the HR cycle ,The recruitment stage supports the HR team
to build the criteria for the candidates in order to fill the vacancy by the right person on the right
time, this stages helps in selecting the best person for the job (Han and et.al., 2015.). The second
stage is educating the employee about the work and the expectations they have from the
employee by educating him/her about the culture and ethics of the company, The third stage aids
the employee to be motived in his/her work as a motivated person could do well in his/her work
as compared to the person who is not motivated, motivation could help the employees to develop
and retain his/her abilities in a more productive way, The fourth stage helps the HR team to
evaluate the performance of the employee in order to decide whether the person is right for the
job or not. The last stage is the celebration stage, the employees should be timely rewarded for

their hard work and contribution in order to keep them motivated and interested in their work,
thus all these factors supports in developing and retaining the talent of the employees.
HR cycle plays an important role in strategic management, it helps the team to implement
strategic techniques which could help in effective management in the organisation (Sigala,
2017).
The Human resource processes and documentation can be improved for the effective
talent management process by:
 Firm should improve its training procedure and have to provide off and on the job
training methods. This will help in managing talent well.
 Carnival UK should take feedback from its employees, it will help in developing
relationship with workers and retaining them in business for longer duration.
ACTIVITY 2
Performance management plan
Issue facing by
the
organisation
Description Strategy to
resolve the issue
Outcomes Time taken

Negative
behaviour of
the waiting
staff
The waiting staff of
Carnival corporation &
PLC are unwilling to
cooperate with the team
leaders, as the working
condition of the company
is not good, the waiter
and waitresses are facing
the challenges of bad
working conditions,
they're not getting flexible
working hours, non
availability of
equipments, the work
culture is not good, not
motivated and appreciated
by their leaders etc.
Because of these reasons
the staff are not willing to
cooperate with their team
members.
Various
strategies can be
used by Carnival
corporation &
PLC in order to
to overcome
from the negative
behaviour of the
staff such as, the
waiting staff
should be
provided with
flexible working
hours, rewards
and recognition
in order to
motivate them,
getting
feedbacks,
increment in the
salary etc., these
strategies could
help the staff in
changing their
negative
behaviour into
the positive one.
The strategies
would help the
staff of Carnival
corporation &
PLC in
providing
satisfaction
towards their
work and build a
sense of
responsibility
towards the
organisation.
These strategies
could change the
negative
behaviour into
positive.
The final result
could take time
as it is a
psychological
factor and is
sensitive to
understand. The
time taken for
the final
outcome could
variate from 2 to
3 months or
more (Han and
et.al., 2015).
Staff retention Carnival corporation &
PLC is facing poor staff
retention as the staff are
not happy with the
In order to
decrease the rate
of retention rate
in Carnival
Implementation
of these strategies
in Carnival
corporation &
The final result
would take a
longer amount
of time as it is a

working conditions and
they're not satisfied with
the working culture
they/re, thus this leading
the employees to leave
the organisation (Dwyer
and et.al., 2016).
corporation &
PLC , the leader
should
implement such
strategies to
overcome staff
retention,
strategies such
as, increment in
salary, bonus,
recognition and
rewards, flexible
working hours ,
appraisal, offer
training, hire the
right employees,
create right
culture etc.
PLC would
increase the staff
retention as the
employees are
happy and
satisfied with
their work.
complex
process. It
would take
nearly 6 months.
ACTIVITY 3
The company, employment and contract law has a potential impact on business decision making
The company plays an important role in the decision making process. Health and safety
act needs to be followed by Carnival UK, as firm has to ensure providing security to all its
workers. They have to make changes in their decision related to creating business environment.
Now company has to provide gloves and other protecting equipments so that accidents can be
minimised (Crotti and Misrahi, 2015). Furthermore, Carnival UK has to follow contact law, that
ensures that employee and employer both fulfil their responsibility and contribute well in
accomplishing goal of business unit. HR manager of Carnival has to discuss term and condition
of employment contract with all its workers so that termination, promotion decisions can be
taken accordingly.

ACTIVITY 4
Legal and Ethical Considerations for Carnival UK
A set of legislations, regulations and ethical principles impact and guide the management
to arrive at the best decision. The potential impact of legislations, regulations and ethical
principles on the decision making of Carnival UK can be explained as : Ethical Principles : Legislation, regulations and ethics is the guiding stone to the working
structure of Carnival UK. Ethics are the moral code of conduct and govern the right
behaviour of employees and facilitate in efficient decision making. The principles guide
the scope of words and deeds of employees and these frame the work culture of Carnival
UK. Work culture of the organisation directly impacts the decision making of a business. Health and Safety at Work Act, 1974 : The health and safety act regulates to provide a
safe system of work and should fulfil the standards laid by the act. It provides that if
employees are injured at workplace during work hours, they should be treated at
company's expense. For example : The Act requires providing adequate heating, lighting
and ventilation at workplace in course of employment. If any employee suffers any
disease or damage due to inadequate lighting and ventilation, Carnival UK is liable to
bear the expense of treatment of the employee. This will lead to increased costs and
fluctuate the prior apportioned funds of investment. Hence, the decision making of
Carnival UK will be altered accordingly and will lead to new arrangement of funds
(Boniface, Cooper and Cooper, 2016). Contract of Employment : Contract of employment defines all those terms and conditions
which were promised by the employer to the employee at the beginning of work and also
includes the regulations inhabited during employment. These terms are binding both on
employee and employers and this governs the decision making of company. The decision
making process of Carnival UK should not disregard or overrule the contract of
employment. Contract of employment binds Carnival UK to stay to its commitments and
could not terminate employees for wilful reasons. Equality Act 2010 : The act aims to foster social inclusion. The Equality Act embodies
the principle that each employee of Carnival UK should be treated on the basis of their
content of character and not by irrelevant and impartial status. It focusses on treating all
workforce equally and not differentiating anyone on the basis of caste, creed, race,

religion and gender. A bias free environment motivates the employees to work more
efficiently and strengthens the decision making process. For example : A disabled
employee of Carnival UK also deserves the same chances of promotion and appraisals as
given to employees with non-disability (Xiang, Magnini, and Fesenmaier, 2015).
 National Minimum Wage Act, 1998 : This act embodied a minimum wage requirement
across UK which stated minimum wage of 7.83 pound per hour for workers aged more
than 25, 7.38 pound per hour for workers aged between 21 to 24 years and 5.90 pound
per hour for workers aged from 18 to 20. Carnival UK has to consider the act
implications regarding budgeting the cost of direct wages expenses. The decision making
inculcates the apportionment of wages as per The National Minimum Wage Act. Carnival
UK has to change its payroll decisions for whom it was paying less than minimum wages.
ACTIVITY 5
Principles of Revenue Management and their Application to the Cruise Line Industry
Principles of Revenue Management Market Segmentation : It refers to the process of dividing total consumer base into groups
to able to fulfil their diverse needs. Market Segmentation in Cruise Line Industry helps
to understand the geographic, demographic and psycho-graphic factors of distinction and
create strategies to target specific market segment. Demand Forecast : It refers to the act of estimation of future requirements of customers
in present. Demand forecasting is necessary where the perishability of product and
services are high. It is a forecasting tool to predict the most certain demand that is likely
to occur in the future. Inventory Management : It refers to the process of managing and supervising the flow of
goods from manufactures to warehouses and from warehouses to point of sale. It involves
accommodation, transportation, transfer, etc. Inventory management is important to
generate revenue timely and accurately. It gives a better insight and visibility of sales
(Vellas, 2016).
Application of Revenue Management for Profit Maximisation in Cruise Line Industry
Market Segmentation helps to allocate marketing expenses efficiently. It segments the
tourists into single tourists, business tourists, health tourists which assists in catering specific

demands of consumers. Targeting specific customer groups helps in gaining competitive
advantage and results in increased sales. Increased Revenue gives the benefit of economies of
scale and develops the ability to generate more profit. Demand Forecasting assist the marketers
and mangers in the cruise industry to reduce the risk of future decision making. It also plays a
significant role in determining the pricing strategy and choosing the channels of distribution.
Demand forecasting is also helpful in designing the appropriate marketing mix which aids in
achieving greater revenue and profit. It is also a tool for evaluating performance. Inventory
Management reduces order cost and develops efficient production scheduling. It minimises the
blockage of financial funds in inventory. It also reduces risk of production shortages and
avoiding lost sales. Inventory Control raises cruise businesses profit by gaining quantity
discounts and taking advantage of price fluctuations. Inventory control aims at reducing the
carrying cost and focus on greater profit margin (Koo and et.al., 2015).
ACTIVITY 6
Importance of budgets for controlling business performance and identifying variances
Budgeting plays an important role in optimum utilization of resources and achieve overall
objectives of a business concern. Its importance can be explained as follows :
 Evaluating and controlling business performance : Budget requires the effective
achievement of targets of operations. Budget is the source of planning for future course
of action and serve as tool for control by evaluating the performance of Carnival UK. It is
the proposed action plan of the company and each action is reviewed in correspondence
to it. Budget serve as a milestone map to measure the quality of workflows in
organisation. Quality controls improve the business performance of Carnival UK and
raises customer satisfaction.
 Identifying variances : Budget formation consists of setting the benchmark of standard
performances. Standard performance is compared with the actual measured performance
and the gap between the standard and actual performance is measured in variances.
Carnival UK identifies the reasons of the variances and understand the issue of such
fluctuations. It takes measure to reduce the effect of variances on the business
performance by generating the Variance Report (Reino and Hay, 2016).

ACTIVITY 7
Financial Statements and Reporting mechanisms
The financial statements and reporting mechanisms consists of :
 Balance Sheet : The balance sheet of Carnival UK presents the assets and liabilities at the
year end. It helps the stakeholders to understand the financial health of companies. It
guides the stakeholders to know the liquidity and solvency position of company.
Income Statement : The income statement of Carnival UK presents the revenue,
expenditure and profit and loss generated during the current financial year. It
communicates the summary of business performance to the stakeholders by expressing
the operating profit as well as net profit.

Royal Caribbean
Income statement
Balance sheet

Carnival UK
Income statement

Balance sheet

Evaluation of performance of both companies
Ratio Carnival UK(2018) Royal Caribbean (2018)
Current ratio 0.24 0.17

Quick 0.15 0.09
Assets turn over ratio 0.45 0.38
Net margin % 16.69% 19.08%
Interpretation:
The current ratio of a company states the liquidity and solvency position. The ideal current ratio
for an organisation is considered as 2. The current ratio of both Royal Caribbean and Carnival
UK is less than 2 which is not attractive for stakeholders. Although, the current ratio of Carnival
UK is better. The Quick Ratio, assets turnover ratio of Carnival UK is better while the net
margin is Royal Caribbean is much better than Carnival UK.
CONCLUSION
From the above study it can be concluded that Human resource manager has to ensure
treating their workers well. They have to take feedback from employees and have to work for
developing their knowledge. This aids in retaining talented people in organisation for longer
duration. Budgeting supports in managing cost well and minimising unnecessary cost. By this
way enterprise can enhance its revenues and can gain competitive advantage as well.
Performance management plan is helpful in analysing issues of firm and taking effective
strategies that may support in dealing with such problems and resolving them.

REFERENCES
Books and Journals
Boniface, B., Cooper, R. and Cooper, C., 2016. Worldwide destinations: The geography of travel
and tourism. Routledge.
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behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services. 22. pp.244-249.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
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Reino, D. and Hay, B., 2016. The use of YouTube as a tourism marketing tool.
Lamsfus, C. and et.al., 2015. Going mobile: Defining context for on-the-go travelers. Journal of
Travel Research. 54(6). pp.691-701.
Alonso-Almeida, M. D. M. and et.al., 2018. Sustainability in small tourist businesses: the link
between initiatives and performance. Current Issues in Tourism. 21(1). pp.1-20.
Sigala, M., 2017. Collaborative commerce in tourism: implications for research and
industry. Current Issues in Tourism. 20(4). pp.346-355.
Han, H. and et.al., 2015. Medical hotels in the growing healthcare business industry: Impact of
international travelers' perceived outcomes. Journal of Business Research. 68(9).
pp.1869-1877.
Dwyer, L. and et.al., 2016. Modeling the impact of Australia’s mining boom on tourism: a
classic case of Dutch disease. Journal of Travel Research. 55(2). pp.233-245.
Crotti, R. and Misrahi, T., 2015. The travel & tourism competitiveness index 2015: t&t as a
resilient contribution to national development. The Travel & Tourism Competitiveness
Report. 2015. pp.13.