The Travel and Tourism Business Toolkit

The Travel and
Tourism Business
Toolkit

INTRODUCTION
Travel and tourism is one of the leading sector in hospitality industry. This provide huge
opportunities to both company and country to expand their business by earning huge profitability
as well as marketing (Anderson and et. al., 2017). There are wide numbers of companies that are
operating in travel and tourism sector at every nation. Organization selected for respective report
is Thomas Cook Group that operates at hospitality sector from 1841. It is founded by Thomas
Cook and its head office is situated at London, England, United Kingdom. Topics covered in this
assignment are main revenue management principles which is used at hospitality sector or
industry, strategies used for managing budget as well as statistical along with financial records.
Along with this, it will also describe how company may manage HR life cycle in respect of
Human Resource strategies and effect of legal as well as ethical situation or consideration on
respective sector.
TASK 1
P1
Revenue management
It is define as strategy of controlled analytics that help a firm in predicting customers
behaviour at the level of micro marketplace as well as it also optimize product accessibility and
price for maximizing profitability or revenue growth (Defining Revenue Management, 2019). At
travel as well as tourism industry through revenue management firms able to manage their
resources in effective manner so that they can use it effectively.
Rationale as well as principles of managing revenue at the travel and tourism industry
There are several rationale and principles of revenue management which is essential for
travel and tourism company like Thomas Cook to consider it, some of rationale and principles
are given below:-
Rational-
 Revenue management help a firm in creating new goods as well as services at proper
pricing (Baptista, 2012).
 Through this a travel and tourism company also able to conduct management among the
revenue mangers, hospitality manager and general manager in proper way.

 By this respective industry firm also able to minimise cost as well as time which is
associated along with traditional pricing action plan.
Principles-
 Market segmentation: In respect of this, potential customers of a firm is bifurcated into
two types i.e. qualified and non qualified. In this segment of market will be based on the
concept of customers that help companies in enhancing their revenue. So as per the
segmentation of market Thomas Cook can develop strategies for increasing revenue.
 Historical demand and pattern of booking: Through this a travel as well as tourism
company predict demand by the historical data of demand and booking pattern
(Baumgartner and Bansal, 2014). So according to this principles it is responsibilities of
Thomas Cook to develop strategies respectively because if customers get proper facilities
then their will be huge chance for earning high revenue.
 Overbooking: This mean situation when a company do more booking then its capacity.
This principle is effective when their will be any cancellation will done from customer's
side. Through Thomas Cook can minimise its risk of refusing facilities and enhancing
revenue as well as customers base.
Tools which are used at travel and tourism industry for the management of revenue
There are various revenue management tools are available in travel and tourism industry
that help firms in generating huge profitability and market shares. Some of the main tools which
are used for revenue management by Thomas Cooks are given below:
 Capacity utilisation: According to this tool it is essential for a company to conduct
booking according to their capacity so that they can utilize it fully. If they will focus to
fill their capacity they travel and tourism company able to estimate their revenue
generation ratio. In context of Thomas Cook they must try to book full seats of their
services so that they can earn huge profitability.
 Discount Allocation: Respective revenue generation tool can be used by a firm for
providing offers and discounts to their potential customers so that they can attain
profitability effectively (Cohen, 2017). In respect of Thomas Cook they can provide
discounts to their first customers so that they get encouraged to reveal their services as
well as they can also provide offers to their potential customers to attract as well as
retain them effectively.