The Travel and Tourism Business Toolkit

This document discusses the key principles of revenue management, financial statements, HR life cycle, performance management plan, and specific legislation in the travel and tourism industry. It provides insights into the importance of revenue management, different pricing strategies, and the impact of regulations on business decision-making. The document also explores the HR life cycle and the significance of performance management in the industry. Additionally, it discusses the specific legislation faced by organizations in the travel and tourism industry, particularly in relation to Brexit.

THE TRAVEL
AND
TOURISM BUSINESS
TOOLKIT

Table of Content
INTRODUCTION...........................................................................................................................7
PART 1:...........................................................................................................................................7
P1 Revenue management principles............................................................................................7
Key principles of revenue management in travel and tourism........................................................7
Rationale and principles of revenue management.......................................................................8
Impact of different pricing strategies...........................................................................................8
Financial statements.........................................................................................................................8
Importance and value of budgets.................................................................................................9
Financial reports..........................................................................................................................9
Part 2..............................................................................................................................................11
P3 HR Life cycle.......................................................................................................................11
P4 Performance management plan............................................................................................11
Part 3..............................................................................................................................................13
P5 Explore specific legislation that organisations in the travel and tourism industry...............13
P6 Potential impacts of regulations, legislation on business decision-making in the travel and
tourism industry.........................................................................................................................15
CONCLUSION..............................................................................................................................16
REFEENCES.................................................................................................................................18

INTRODUCTION
Tourism industry refers as a set of industries which offers infrastructure and goods
services to customer as well provide travel facilities for different purpose. In simple word, the set
of overall business activities which fulfil the needs of tourist by offering desirable products while
they visit various places by way of tourism. Travel & tourism industry is essential because it give
contribution in countries economy. Additionally, it helps to generate more employment and
revenue. It also plays important role in development of countries GDP. To understand travel and
tourism industry there is an example of Thomas Cook Group. It is a british global travel group
which is established in London, UK. It includes concept of revenue management and principles
of revenue management for travel and tourism industry.
PART 1:
P1 Revenue management principles
Key principles of revenue management in travel and tourism
Revenue management is an integral decision important for Thomas cook company who
has large operations spread in all over world in the travel and tourism industry offering tourism
packages to people at beautiful destinations. The key principles of revenue management analysed
by top management of company are Market segmentation which enables the managers to
segregate the finance tools utilized for segmenting the people country wise and continent wise.
The promotion criteria can be established by effectively targeting the people into various
segments, company finalizes the finance pooling accordingly. Proper segmentation of capital
allows proper utilization of resources and minimum wastage. Inventory pooling is also an
important principle of revenue management which enables managers to finalize the inventory
and capital funds required by company management for various function such as marketing
activities, organizing proper destinations for tourists (Mariani and Guizzardi,2020).Thomas Cook
has established goodwill among customers all over the world when it comes to offering high
quality destinations holidays and tourism packages. The company manages the revenue by
plotting down the demand in coming period and supply forecasting which enables detailed
analysis on all criteria. Thomas cook company lays high importance to proper facilities in
accommodations and various amenities provided to all guests who take travel packages based on

various offers by company. It has established high brand value among people globally by high
quality performance delivery to people who look for holidaying in beautiful destinations with
family and friends (Aratuo and Etienne,2019).
Rationale and principles of revenue management
Thomas Cook gives high importance to revenue management as the company top
management believes in serving people as their comfort demands and beautiful stay with high
quality facilities. There are various sectors where proper finance distribution is required
efficiently which enables company to segregate marketing functions, promotion and advertising
all over the world and reaching out to new segments of customers inn various counties. Proper
distribution of revenue along with strong management helps company to expand its business
operations into new counties efficiently and minimum wastage of resources which highlights the
coapnys goodwill as an effective output (Ozdemir, Ar and Erol,2019).
Impact of different pricing strategies
Thomas cook has attractive price strategies for all customers and people from all over the
world who look for quality comfortable holidaying experience in reasonable pricing structure.
There is high importance of different pricing strategies and various offers given to propel to
attract them towards company travel and tourism services (Semenz and Ebi, 2019). Thomas cook
has various offers such as Christmas and new year offers for people, and other vouchers and
discounts facilities which enables to attract large pool of people. Different pricing strategies is
highly important for company management and high profitability margins as it enables to create
competitive benchmarks among other brands emerging in tourism industry. The travel and
tourism industry is facing high competitiveness from last recent years which highlights the major
importance of building different pricing strategies for Thomas Cook.
P2 Financial statemnents
Financial statements have huge importance for Thomas Cook whee the operational
details regarding their management structure and percentage of people opting for company
packages graphics can be analysed in detail. The stakeholders as well as shareholder highly look
forward to annual balance sheet and profit and loss reports,which highlights company
performance in diversified sectors. Financial statements explain in detail how much capital is
pooled in resources and what departments are functioning to optimum levels with high
efficiency. The company can use financial reports for comparing its performance from last years

which also enables people to get clear idea of company operational efficiency standards (Taheri,
Hosany and Altinay, 2019).
Importance and value of budgets
Thomas Cook maintains proper records of all financial statements on the official websites
which can be seen by people and shareholders, interested in investing in company or seeking for
travel packages. Financial statements reports allows people to compare the performance and
benchmarks set by the high quality services offered to people all over the world,as compared to
other companies and brands In travel industry. The company has strong goodwill among people
globally in serving strong quality and high comfort according to people desire who opt for travel
packages. The detailed reports also enable top management to evaluate the company
performance in various sectors variably and how it can reach new benchmarks and expand into
untapped economies. Graphics determine the potentiality benchmarks of company in reaching
new sectors of customers globally and the partnerships with other global brands on business
arena (Vogel,2016).
Financial reports
The graphics and statistics of previous years performance and currently years revenue
delivery enables clear structure of company finance magenta,how strongly it has been able to
sustain it in the business of travel industry. People all over the world can have direct view ton
company operational efficiency for investment decisions. High profitability margins show the
high vitality if business operations of company and how much it created business globally by
attractive new segments of customers and expansion into new sectors.

Source: Jennifer Luty,2020
The company statists of report show that the company was facing fluctuation in revenue scale
during the Brexit decisions between Europe and UK. From recent years the profit margins has
been again boosting which highlights the company management is determined to reach the set
targets with high efficiency and strong customer services delivery. The company has strong
parameters to check its yearly performance of capital utilization and hope much revenue it has
been generating from various operations. The raising margins of revenue profits areas strong
determinants of company performance within the years and how much it has captivated the
market share in travel industry. Top management can use the statistics to garde the weaknesses
analysed and operate new technology equipments to maintain proficiency levels in company
operational structure (Treiblmaier and Önder,2019).
Thomas Cook revenue report

Part 2
P3 HR Life cycle
Induction, orientation, on-boarding
It is second stage where HR introduces new joiners form their job responsibility and their
staff who works with them. Travel agent plays essential role in organization because they
appreciate employees to sell travel holiday package to customer on wide scale (Victorovna and
Ivanovich, 2019). So HR offers open communication facilities were new joiners can direct
communicate with HR related their job issues, salary issues and others.
Career planning
It is another stage of HR where conduct training & development session for new joiners
and existing employee so that each employee communicates to each other and improves their
performance by understanding their job responsibility clearly. Even manager offer incentive to
those employees who gives high efforts and achieve large number of tasks. This strategy inspires
employees to give high performance and become efficient to take incentives except salary as
well.
Retention
It is fourth stage where HR offers various polices such as health and insurance policies, job
securities, Compensation policy etc. which inspires employee to retain within company. Apart
from this, HR involves employee in decision making process gives values to listen them
properly. Thus, HR connects them emotionally and make them satisfy from their job.
Separation and termination phase
It is last stage where HR analyse effectiveness of operation within organization when they find
operation unable to meet desirable objectives then terminate it. As same for employees when HR
finds that some employees doesn’t comply with job profile then terminate them and recruit
talented employees.
P4 Performance management plan
Performance management plan cab be defined as the procedure which organization uses
to line up their employees and resources for strategic objectives. In simple word, the procedure
of helping and make efficient employees to work in such a way that company meets their

objectives over the period (Sato, Kobayashi and Shirasaka, 2019). HR develops performance
management plan for travel agent. Performance management plan contains three components
such as:
Plan
Human resource management initially makes specify job role form travel agent and keeps
their requirement which must be meet job profile. Apart from this, manager creates a goal and
sets SMART objectives which is used by recruiting travel agent for travel and tourism industry.
Smart objectives is the one of the effective way which clearly defines that which needs is more
crucial and needs to be done. SMART objectives means specific, measurable, attainable, relevant
and time bound which helps company to meet their goals over the period. Human resource
designs training session which requires to train new candidates within company. Thus, HR
creates theme for developing performance management plan.
Monitor
It is second stage of performance management plan where human resource measures
effectiveness of plan which they prepare for giving training of new joiners and comply with
other existing employees within workplace (Hessand, Kelman, 2017). Human resource
communicates with other departments on weekly basis to know about tourist agent’s
performance within workplace. Apart from this, HR gathers information to customer as well
about their performance. thus, manager monitors tourist agent’s performance.
Reviews
It is third stage where HR assigns challenging task to new joiners along with time
deadline and sets priorities which should complete within given time period. The main goal of
challenging task is that to analyse potential level of employees within workplace while dealing
with task. Apart from this HR gathers feedbacks from trainer who helps manager to give score
sheet as well aware employees about their strength and weakness.
Thomas Cook Group Plc is travel and tourism company which faces various issues like
employee’s retention within workplace. There are various methods which is used by human
resource to resolve negative behaviour of employee. For example, human resource management
offers two-way communication to employees where they can directly communicate with HR
related their issues such as salary issue, work pressure issues and others (Ert, Fleischer and

Magen, 2016). Even manager encourage team working at workplace that leads changes in
employee’s behaviour regarding their job responsibility.
Importance of the HR life cycle in relation to strategic talent management and overcome issues
of staff retention
Human resource life cycle plays essential role in strategic talent management because
human resource has goal to recruit best talent which is suitable with vacant position. On the other
hand, strategic talent management implements strategy for screening best talent. HR life cycle
includes five steps recruitment, induction program, career development, retention and separation
while strategic talent management creates strategies to get success in HR operations (Rahman,
2018). Thus, both management HR and Strategic talent plays close relation together at
workplace. To overcome staff retention issues offers various policies like health insurance
policies, job security policies by human resource. Additionally, human resource offers reward
strategy i.e. recognition and incentives which is best way to encourage employee to give high
performance at workplace. thus, human resource can retain staff prolong time within
organization.
Recommendation
 360 feedback is latest strategy which HR can use to measure effectiveness of current
strategies (Crouch, Huybers and Oppewal, 2016). It is not only help to analyse
effectiveness of HR procedures but also determines barrier which reduces effectivity of
procedures.
 Artificial intelligence also good option which HR can use to improve talent planning.
Artificial intelligence can improve software which helps to keep more information
secretly.
 HR can utilize international HRM practices which helps organization to innovate their
services well manner.
Part 3
P5 Explore specific legislation that organisations in the travel and tourism industry
There are various legal issues which is faced by Thomas Cook Group Plc. While
operating in UK and other countries. For example, tourism industry gives high contribution in

UK’s economy. London which is highly visited city in Europe where large number of UK’s
visitors oversees for Europe. Due to Brexit relationship between UK and European union
becomes weak because they face various legal issues such labour, freedom of movement and
aviation agreement (Peters, 2017). So, European countries are very important for travel tourism
industry. Additionally, Europe countries unable to generate high revenue because most of the
travellers unable to visit place. Thomas Cook Group Plc gets negative impact of Brexit because
they can’t outsource employee from European countries who keeps more knowledge about
visiting sites. Additionally, Organization have to follow aviation agreement which creates
uncertainty in HR operations. Thus, kind issues face by organization after Brexit.
Thomas Cook Group Plc. Is a travel and tourism industry which has goal to generate high
revenue by offering best services and goods to the customer so that in return gets high profits.
Organization offers worldwide services and headquartered in London, UK. So, organization have
to comply with several specific legislation which is enlisted in regulation. Specific legislations
are:
Consumer protection law
The consumer protection law is very crucial for travel and tourism industry. According to
legislation when any tourism industry breached this legislation for private gain then they lead to
penalty which can be fines or prison (Morrison, 2018). So it is primary responsibility of travel
and tourism industry to ensure their consumers about their life protection to give whole
information about trip safety. When any organization misleads their consumers to give wrong
information then they will punish for breaching legislation. Thomas Cooks Group Plc have to
comply with this law because it is crucial legislation which is implanted across the world.
Equality Act
It is second legislation for travel and tourism industry, according to law diverse cultural
employee who offers their services in travel and tourism industry they should treat fairly at
workplace. There shouldn’t be any discrimination or harassment while working with team at
workplace. Equality act is specially applied for travel agents who often treats unfairly particular
employee due to their poor performance at workplace. According to equality act, travel agent
needs to assure that they don’t treat certain employees unfairly at workplace. even they offer
equal opportunity to employee either they are male or female. Travel agent has goal to sale large
number of holidays package so puts pressure on several employees to complete sales target over

the period (Agomoh, Eze and Nwokoro, 2019). organization recruits travel agent for enhancing
employees selling behaviour within workplace. So, HR added values of policies by complying
with equality act at workplace.
Health, safety and security legislation
It is also crucial legislation which organization should keep to ensure staff that they safe
at workplace. even when they suffer from any type of health issues in that state organization will
pay overall expenses of hospitals on the behalf of employees (Li, Robinson and Oriade, 2017).
If any travel and tourism industry breaches legislation then they have to pay penalty or can take
licence as punishment. Additionally, it is not only applicable for staff who offers their services in
travel and tourism industry as well customers. According to law, organization will assure
consumer about their health safety by offering health insurance policy. Thomas Cook Group plc
offers health, safety and security policies for staff which comply with legislation.
Air travel organizer Licensing (ATOL)
It is another legislation which essential for tour operators when they take passenger for
travel purpose. When any organization breached this law and sells airline travel tickets and
holidays packs then it is considered as criminal offence. Thomas Cook Group Plc has ATOL that
is used to trade with other tourism industries in different countries. Due to licence easy to
enhance purchasing behaviour of customers at workplace.
P6 Potential impacts of regulations, legislation on business decision-making in the travel and
tourism industry
Employment law
It is legislation law which gives impact on organization decision making process. For
example, according to employment law no employee will recruit on low wage. Travel and
tourism industry should have antidiscrimination and anti-harassment policy within workplace.
another rule organization should follow equality act which is undertaking into specific
legislation. Overall rules are comprised into employment law which each travel and tourism
industry should comply. Employment law gives positive impact on organization’s decision
making because Thomas Cook Group Plc operates in worldwide and comply overall legislation
which is compulsory for tourism industry (Krakhmalova, 2017). HR gets more support of
government when they give high opportunity to people for applying for job across the world. the

main reason of government supports is that they have goal to reduce employment rate from
country so government helps them to recruit large number of employees at workplace. while
organization gets opportunity to enhance selling behaviour of holidays package through
employees. On the other hand, organization gets negative impact when they recruit employee
beyond boundaries then they have to keep various policies of employment that leads uncertainty
in decision making process. Additionally, organization can’t recruit large number of employees
within workplace because they have to pay high salary that automatically can reduce economical
infrastructure.
Contract law
It is most essential law for travel and tourism industry when they offer service
worldwide. Contract is not about to sign on document formally, it is a legally binding agreement
which leads two parties together. For example, a contract is only prepared when both parties
agree to overall terms and condition which is enlisted in contract. When any party decide to
break agreement in that state, they have to pay fines and penalties towards the party who breach
contract. Organization gets positive impact of this legislation because they offer contract for
holidays package in which enlisted transportation services, good services. Apart from this, they
promise to customer overall services must be provided in their agreement. When tour operator
unable to provide agreed services then they will be liable or have to pay charge (Jordan and
Moore, 2018). This contract law gives positive impact on organization image because it builds
trust of customers on organization services. It gives negative impact as well when sometime
organization unable to offer enlisted services in that state have to face charge. Thomas Cooks Plc
group has plan to operate franchises in global market where gets negative impact on their
decision because they have to add other services which improves cost of travel package. It
automatically reduces purchasing behaviour of customer within company.
CONCLUSION
The importance of revenue management, application, strategies and implantation can be
concluded in report. It has been summarized the concept of HR life cycle that includes
recruitment and selection, onboarding and orientation and exit and transition. It can be concluded
performance management, training and development, succession planning and maintaining
employee for retaining staff. Explain specific legislation which organizations in the travel and

tourism industry have adhere has been concluded in report. Employment law and contract law
has potential impact on business decision-making process in travel and tourism industry can be
summarized in report. It can be comprised different types of financial statements and reporting
mechanism for organization with travel and tourism industry.

REFEENCES
Books and Journals
Agomoh, M.J., Eze, I.L. and Nwokoro, N., 2019. Cyber Crime and Underdevelopment of
Tourism Industry in Nigeria. ESUT JOURNAL OF SOCIAL SCIENCES. 4(2).
Aratuo, D. N. and Etienne, X. L., 2019. Industry level analysis of tourism-economic growth in
the United States. Tourism Management. 70. pp.333-340.
Books and Journals
Crouch, G.I., Huybers, T. and Oppewal, H., 2016. On the Choice of Tourism Destination versus
Tourism Experience: Insights from an Analysis of Past Choice and Future Interest.
Ert, E., Fleischer, A. and Magen, N., 2016. Trust and reputation in the sharing economy: The
role of personal photos in Airbnb. Tourism Management. 5. pp.62-73.
Hess, J. and Kelman, I., 2017. Tourism industry financing of climate change adaptation:
exploring the potential in small island developing states. Climate, Disaster and
Development Journal. 2(2). pp.33-45.
Jordan, E.J. and Moore, J., 2018. An in-depth exploration of residents’ perceived impacts of
transient vacation rentals. Journal of Travel & Tourism Marketing. 35(1). pp.90-101.
Krakhmalova, N.A., 2017. Exhibition activity as an instrument of tourism business marketing
promotion to the national and foreign markets. Management. 26(2). pp.54-66.
Li, S.C., Robinson, P. and Oriade, A., 2017. Destination marketing: The use of technology since
the millennium. Journal of destination marketing & management. 6(2). pp.95-102.
Mariani, M. M. and Guizzardi, A., 2020. Does designation as a UNESCO world heritage site
influence tourist evaluation of a local destination?. Journal of Travel Researc. 59(1).
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Morrison, A.M., 2018. Marketing and managing tourism destinations. Routledge.
Ozdemir, A. I., Ar, I. M. and Erol, I., 2019. Assessment of blockchain applications in travel and
tourism industry. Quality & Quantity, pp.1-15.
Peters, A., 2017. Checking in: How Soft Law and Corporate Social Responsibility Are Filling
Governance Gaps to Combat Human Trafficking in the Global Travel and Tourism
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destinations and the tourism industry. Journal of travel medicine. 26(5). p.taz026.
Taheri, B., Hosany, S. and Altinay, L., 2019. Consumer engagement in the tourism industry: new
trends and implications for research.

Treiblmaier, H. and Önder, I., 2019. The Impact of Blockchain on the Tourism Industry: A
Theory-Based Research Framework. In Business Transformation through
Blockchain(pp. 3-21). Palgrave Macmillan, Cham.
Victorovna, S.S. and Ivanovich, S.V., 2019. Way to assess the development of municipal
tourism infrastructure. Journal of Applied Engineering Science. 17(1). pp.87-92.
Vogel, H. L., 2016. Travel industry economics: A guide for financial analysis. Springer.