The Travel and Tourism Business Toolkit - Assignment

The Travel and Tourism Business Toolkit

Table of Contents
INTRODUCTION ..........................................................................................................................3
P1 Rationale and principles of revenue management in relation to travel and tourism industry3
P2 Specific sector of travel and tourism industry applies revenue management tool in order to
generate and increase profit.......................................................................................................4
P3 Different stages of HR life cycle and importance for retaining and developing talent.........5
P4 Performance management plan..............................................................................................6
P5 Legislation which is required for travel and tourism industry to adhere...............................6
P6 Impact of Employment and contract law on business decision making in travel and tourism
industry........................................................................................................................................7
P7 Different types of financial statements..................................................................................7
P8 Importance and value of budget for controlling business performance ................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Travel and tourism is defined as an combination of activities which are performed by
individuals so as to completing their purposes of pleasure or business. In addition, this is an
activity in which individual travel to other places and stay there for feeling environment of that
place. Chosen firm for this assignment is Carnival Corporation & Plc which is engaged in
hospitality industry and provides travel and tourism services across the world. Present report will
discuss rational and principle of revenue management along with phases of HR life cycle.
Performance management plan, several legislations, financial statements and importance of
budget will also covered in this report.
P1 Rationale and principles of revenue management in relation to travel and tourism industry
Revenue management is associated with overall monitoring of cost and benefit within the
organisation. This is very important for the managers of Carnival Corporation to manage the cost
and benefits in their cruise, accommodation and other facilities so that all functions would be
functioned effectively. In relation with this, finance managers of Carnival Corporation & Plc
have duty to make focus on their income and expenditures which are earned or spend by them in
several services so that strong profit base would be build easily. In addition, through predicting
consumer behaviour and providing services accordingly company can easily increase their
revenue figures (Bayliss, 2014).
Rationale - Revenue management is very important in creating new products, services
and attractive pricing strategies so that company can easily conduct its business operations. In
addition, it also provide supports to the managers of organisation in identifying those functions
or practices which are time and cost consuming so that through removing them products would
be provided to customers at reasonable prices.
Principles of revenue management:
 Market Segmentation: In it, Management of organisation have to segment the
customers based on income level, age group, genders etc. Through this, Carnival
Corporation can easily increase sales and profitability. Overbooking: In it, management of Carnival have to offer reservations to customers
rather than their capacity. This principle is use when cancellations are higher than

reservations. Purpose of this is to increase level of booking so that revenue can be
enhanced and risk of loss can be reduced.
Revenue Management Tools
 Discount Allocation: This tool is used when organisation have to increase its sales in a
short time frame. Through using it, Carnival can easily increase their sales through
offering discount to customers on advance booking section. This will not only increase
the sales but also build strong customer base of organisation in market.
 Capacity Utilization: In order to generate revenue and optimal utilising the capacity,
management of Carnival should evaluate reservation capacity properly and offer
incentives to employees so as to filling the vacant seats of cruise. For e.g. if there are
availability of 120 seats on a cruise, then management should fill all the seats effectively
so that company can't face losses while providing services.
P2 Specific sector of travel and tourism industry applies revenue management tool in order to
generate and increase profit
There are several departments like food and beverage, reservation, HR, accommodation
etc. are formed in travel and tourism organisation so as to smooth functioning and increasing
revenue and profit in market. For instance, revenue management tool is applied within the food
and beverage department of Carnival Corporation and how it works for increasing profitability is
described as below:
Several kinds of facilities and services like fast food, drinks, fine dining and hygiene
quality of food are provided by food and beverage department of Carnival. This sector not only
satisfy the hunger of customers but also support the firm in enhancing customer base and
profitability (Cohen, 2017). For managing all functions and revenue figures of this division,
management of Carnival should take support of revenue management tool and form effective
strategies so that profitability and revenue of firm can enhanced. For implementing this tool,
managers can use Zoho desk so that profit can be generated along with high customer base
effectively.
Zoho desk is a tool which supports the organisations in delivering outstanding services to
their customers. It not only helps the organisation in providing satisfaction to customers but also
supports the customers in getting best services without facing any hurdles. For using this tool,
managers of Food and beverage department have to provide effective training to their employees

because it works on the basis of performance of employees and satisfaction of customers. While
employees performs their duties in well manner and provide maximum efforts in order to
satisfying the needs of customers. It will automatically leads the firm towards high profitability
and revenue figures. For increasing satisfaction level and gaining positive reviews from
customers, managers of food department can also add some more facilities like TV, Wi-Fi, food
in room etc. which will automatically increases profitability and market share of organisation.
P3 Different stages of HR life cycle and importance for retaining and developing talent
Human resources can be defined as those resources whose efforts decides the growth and
success of firm. They needs to follow the HR life cycle stages for executing their job roles with
the required accuracy. This HR life cycle is categorised in several stages in which role of
employees are changes on the basis of time. Stages of HR life cycle in Carnival is given below:
 Recruitment: It is the first stage in which, Management of Carnival have decided to
recruit managers for food and beverage department. For this, they have responsibilities
to develop effective strategies so that highly experienced and knowledge candidates can
be hired for the position of managers. Education: After recruiting highly experienced and knowledgeable managers for food
and beverage department, management of Carnival have responsibility to provide
effective training to them. So that they can understand their duties and performs
accordingly (Hall, 2012). Motivation: This stage plays very important role in growth and success of organisation.
For this, management of Carnival can build effective relations with newly recruited
managers, take support from them in decision making or appreciate them on their
performance which brings motivation in them and they will perform their duties in well
manner.
 Evaluation: In it, management of Carnival should measure the performance level of food
and beverage managers and if it is less then expectations then they have to provide
training to them so that, their performance level can be increased and further tasks will be
performed with full efficiency.
 Celebration: This is the last stage in which, firm celebrates their achievement and gave
thanks to their employees by providing them bonuses, appraisals, incentives etc. In

Carnival, they should offer extra pay for overtime to their newly recruited managers so
that they can retained and provide contributions in firm for a long time period.
Importance of HR life cycle in context of Talent Management: All the above
discussed steps of HR life cycle are very important because it assist the managers of Carnival in
enhancing performance-level of employees and encourage them to work hard so that goals will
be achieved within the time-frame. When employees will feel valued at workplace then they will
retained in firm for long duration of time and helps in increasing productivity of organisation.
P4 Performance management plan
In order to achieving objectives easily, it is very important for the firm to form an
effective performance management plan so that future challenges can be overcome and growth
would be attained by organisation. It has been identified that various problems are faced by the
management of Carnival which are related with working conditions and time duration issues of
employees (Nickson, 2013). For overcoming this difficulties, management should form a
performance management plan which is given as below:
Assess current performance management process: In it, Management of Carnival have
to determine actual strength of firm which includes human, physical and intangible resource and
analyse current organisational structure. In addition setting of mission is also important so that
organisational goals will be achieved through utilising all available resources.
Set objectives and Goals: After setting mission, Management should set the targets and
make teams of employees who have similar skills and efficiencies so that their full potential can
be used in achievement of goals. Through this, conflicts will be removed from the workplace
which leads the firm towards growth and success in market.
Create and action plan: This is an important step in which management of Carnival have
to develop action plan so as to resolve the conflicts of employees. In it, management of Carnival
should segment each work of cruise in a break down manner so that employees will feel
motivated and performs their duties in well manner.
All the above discussed activities will helps the managers in overcoming the challenges
and issues which are facing by employees in the workplace of Carnival. Through solving
challenges, employees feel motivated and performs their duties in well manner.

P5 Legislation which is required for travel and tourism industry to adhere
Each organisation have responsibility to performs its duties through following proper
rules and regulations which are made by government of nation so that any difficulty wouldn't be
faced by organisation. Some of the contract and employment legislations which are followed by
Carnival Corporation in order to perform their duties in travel and tourism industry are given as
below:
Package Travel & Tour Regulations, 1992 - This act was established by UK
government in order to regulating or managing the functions of travel and tourism sector.
According to this law, each organisation of tourism sector have duty to provide services to
customers as per signed contract with them. It is essential for carnival to follow this act in order
to avoid penalties from regulatory bodies.
The Employment Rights Act, 1999 and 2003: According to this act, every employer
have responsibility to treat equally their employees and provide healthy environment to them so
that they performs their duties in well manner. Each employee who performs its duties in an
organisation have right to get pays according to its work. Therefore, management of Carnival
have duty to provide healthy environment to their employees at workplace so that any conflict
can't be faced by them at workplace.
P6 Impact of Employment and contract law on business decision making in travel and tourism
industry
It is very necessary for the managers of Carnival to adhere all above discussed
employment and contract legislations properly so that any difficulty wouldn't be faced by them.
As they are performing their duties in travel and tourism sector then they should provide all
facilities to the customers as per the contract so that positive brand image can be build in mindset
of customers (Du Cros, 2014). They have also responsibility to provide equal opportunities to
their employees so that they can show their talent and chances of growth will be higher for firm
in market.
P7 Different types of financial statements
There are mainly three kind of financial statement which are used by company for
identifying their current position and efficiencies in market.

Income statements: This part of financial statement provide support to the management
in identifying actual income and expenditures of organisation. So that further decisions can be
taken by the management.
Balance sheet: It is formulated at the end of year by each organisation. Therefore, it is
very essential for managers of Carnival to formulate this financial statement because with the
help of this they can identify their current debts and reserves for upcoming year.
Statement of changes in equity: This statement is made for identifying the position and
changes of equity prices of firm in a specific time period. These changes are occurred due to
issued dividends, market fluctuations.
P8 Importance and value of budget for controlling business performance
Budget is an essential requirement of an organisation in order to perform the business
operations in an effective and proper manner (Howe, 2012). This budget is beneficial for the
companies in eliminating the financial challenges which can impact the business performance.
Mentioned below there are some importance and values of budget:
 Budget is essential for Carnival Corporation & PLC in preparing for the financial
challenges and issues which can impact the company in gaining growth in an continuous
way.
 This is also beneficial for Carnival Corporation & PLC in monitoring the requirements of
the various processes such as food and beverage, accommodation etc.
CONCLUSION
It has been concluded from the above report that the travel and tourism business toolkit is
essential for the firms in performing their operations effectively. The companies can use the
revenue management plan for managing the different resources which can assist the company in
enhancing their profitability. There are several legal laws within travel and tourism industry
which should be followed by the business firms in accomplishing their goals and objectives
effectively.

REFERENCES
Books and journals
Bayliss, J. and et. al., 2014. The current and future value of nature-based tourism in the Eastern
Arc Mountains of Tanzania. Ecosystem Services. 8. pp.75-83.
Budeanu, A. and et. al., 2016. Sustainable tourism, progress, challenges and opportunities: an
introduction.
Cohen, S., 2017. Decline, renewal and the city in popular music culture: Beyond the Beatles.
Routledge.
Du Cros, H. and McKercher, B., 2014. Cultural tourism. Routledge.
Hall, G. M. and Howe, J., 2012. Energy from waste and the food processing industry. Process
Safety and Environmental Protection. 90(3). pp.203-212.
Kapiki, S., 2012. The impact of economic crisis on tourism and hospitality: results from a study
in Greece. Central European review of economics and finance. 2(1). pp.19-30.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Online
Package Travel Regulations 1992. 2019. [Online]. Available through: <http://www.on-holiday-
claims.co.uk/package-travel-regulations-1992.aspx>.