Assignment: The Travel and Tourism Business Toolkit

The Travel and Tourism Business
Toolkit

Table of Contents
INTRODUCTION................................................................................................................................3
LEARNING OBJECTIVE 1................................................................................................................3
P1 The rational and principles of revenue management for the travel and tourism industry......3
P2 How a specific sector of the travel and tourism industry applies revenue management tools to
generate and maximise profit......................................................................................................5
LEARNING OBJECTIVE 4................................................................................................................6
P7 The different types of financial statements and reporting mechanisms for organisations within
the travel and tourism industry....................................................................................................6
P8 The importance and value of budgets for controlling business performance and identifying
variances......................................................................................................................................8
CONCLUSION....................................................................................................................................8
REFERENCES...................................................................................................................................10
INTRODUCTION..............................................................................................................................11
LEARNING OBJECTIVE 2...............................................................................................................11
P3 Review the different stages of the HR life cycle applied to a specific travel and tourism job
role, and their importance for retaining and developing talent.................................................11
P4 Develop a performance management plan for a specific travel and tourism job role, applying
techniques to resolve negative behaviour and to overcome issues of staff retention................12
CONCLUSION..................................................................................................................................13
REFERENCES...................................................................................................................................14
LEARNING OBJECTIVE 3..............................................................................................................15
INTRODUCTION..............................................................................................................................15
P3Explore specific legislation that organisations in the travel and tourism industry have to adhere
to................................................................................................................................................16
P6 Using specific examples, illustrate how company, employment and contract law has a
potential impact on business decision making in the travel and tourism industry....................16
CONCLUSION..................................................................................................................................17
REFERENCES...................................................................................................................................18

INTRODUCTION
Travel and tourism is very big in size and the main work of them is to connect different part
of world by charging some specific money for it. The study of this report is based on British
Airways, it is one of the biggest organisation of UK which provide product and services in airways
sector. They are also one of the world's leading premium airline, they are headquartered at
Heathrow, Gatwick, London airport (Bayliss and et. al, 2014). The network of them is very vast,
which helped them in making themselves as one of the most extensive scheduled airline in world.
Their network has spread in about 150 countries, which help them in connecting about 1000
destinations. In this report, as study will take place on principles of revenue management along with
their importance, also it's tool's application for British Airways. Also a study will take place on how
important the budget is for them and also different types of reporting mechanisms and financial
statements will get explained.
LEARNING OBJECTIVE 1
P1 The rational and principles of revenue management for the travel and tourism industry.
In travel and tourism industry revenue management is related to generating more revenue as
well as increasing profit. As well it is all about selling same product to right customer within
specified tine for generating revenue (Revenue Management for Tourism and Hospitality Industries,
2019). In addition to this, there are several professionals in respective industry who refer revenue
management as yield management. This strategy is based on understanding, anticipating as well as
influencing customer behaviour. So that profit of an organisation working in travel and tourism
industry will increase by utilising fixed time-limited resources. There resources are airline seats,
hotel rooms reservations or advertising inventory. Some principles of revenue management are as
follow :-

1. Market Segmentation : Market segmentation is one of the most important principle which
organisation like British Airways use to apply in their revenue management. This will help
them in targeting a specific group of customers, which have different behaviour ( Budeanu
and et. al, 2016). This will help British Airways in making offers which that can fulfil the
need of their targeted customers and also their budget level.
2. Historical Demand and Booking patterns (demand calendar) : This principle come
before budget and forecasting of products. This also helps in making informed decisions for
pricing which are based on data and statistics. This is a yearly road map which help in
building revenue management strategies. It use to give information about pattern of demand
in history and related them to future events. In this, British Airways use to study all the
events which can affect their demands, in both positive and negative manner. It is also
important for them that they must identify these events on regular time period, so that they
can gain knowledge about impact of these events on their demand.
3. Demand Forecast and Displacement Analysis : Demand forecasting in tour industry can
be initialized by making a budget, as it is one of the most important forecast for an
organisation. For making an accurate forecast, it is very essential for British Airways to
discuss some elements which are :- unconstrained demand, stay patterns, booking pace. It is
very important for them to make a realistic budget, but also it is essential for them to make
budget where they can set new target along with time. Also the budget of organisation must
have answers of some questions like, What will happen if they will invest in sales resources,
what will happen if they will invest in online marketing, what will happen if company
increase their online visibility? Etc.
4. Pricing and Inventory management : For an organisation like British Airways, price
management is refers to governance of different price of various products and services
according to their demands ( Oppewal, Huybers and Crouch, 2015). For example, British
Airways have data of their different customers then they can provide different products of
different price to them, so that they can attract ample number of customers towards their
products and services. In this, British Airways can provide offers and discount to those
customers, which love to make booking earlier. Along with this, they can provide some
discount tin low season and also can charge high prices in boom of season. In present
context, British Airways could effectively utilise differentiated pricing strategy in order to
grab the attention of travellers from all over the world. This is being considered as a
differential pricing method, that could help British Airways in pricing the same services with
different prices, considering the form of the service, time of delivery, payment terms, and
focusing upon the customer segments as well.

If it is critically analysed then, using this type of pricing strategy could help British Airways
in profit maximisation but it may also consists with risks as well. On the other side, customer
relations might get affected due to differentiation if found by a particular individual on two different
sites. Here, it can be said that using different range of risk management principles. Here, it will be
required for British Airways to first identify the issues that can be faced by British Airways just
when using the differentiated pricing strategy. Then develop range of controlling units and make
risk decisions. Other step that can be taken by British Airways is to implement controls and
supervise and evaluate the chances of creating favourable conditions for themselves while serving
to customers.
5. Overbooking Information System : Most of the products and services offered by a tourism
organisation can get booked and when customer use to book it, then organisation have
opportunities to negotiate them (Leung and et. al., 2018). This is the condition where
organisation can negotiate with customer and also try to sell most expensive products of
them, and also try to realize the greatest value of the offered products. Yield management is
a method which is based on knowledge, this help organisation like British Airways to make
make best revenue. This also help them in making their price controlled, sales booking and
capacity management.
P2 How a specific sector of the travel and tourism industry applies revenue management tools to
generate and maximise profit.
Revenue management is of the most important activity of organisation like British Airways,
which provide their products and services in hospitality and tourism industry. This will help them in
improving their profitability and also help them in attracting several number of customers towards
their products and services. For doing this, British Airways can use ample number of tool and
techniques. It is one of the biggest organisation in the world of airline sector. Therefore, for them it
is very much essential to use those tool and techniques a way, by which they can achieve some
competitive advantages. Few of these tools and techniques of this are as follow :-
1. Capacity utilisation (yield per available seat) : For applying revenue management, one of
the most crucial concept is capacity utilisation. It is defined as the ratio of total capacity,
which is exactly achieved in the given time period. It is also used as measures which
organisation can take for productive efficiency (Chang Backman and Chih Huang, 2014). As
the output rises, the average production cost use to come down – which says that, higher
utilisation will lead to reduction in per unit cost, and also help them in increasing their
competitiveness. Therefore, most of the organisation like British Airways try to achieve full

capacity which means 100% utilisation and also as much as possible.
2. Discount allocation : Discount allocation is a tool, where organisation like British Airways
use to provide low cost offers on their products and services to their customers. This
condition is very common when organisation have that product and service in very huge
amount or in condition when that product is not able to attract ample number of customers. I
the case of British Airways, they have to cut down the cost of their seats of flights when the
time in final event is very low and the number of vacant seats are very high. This will lead
them in gaining some revenue and make a condition like some revenue is better then
nothing.
3. Duration control : It is tool which generally utilise in company while booking room
because it require duration that for how much days room is needed. Within duration control
manager of hotel mainly check booking dates of guest and then analyse on which date their
will be large number of guest in hotel. Duration control is tool which help in generating
more revenue because with the assistance of it booking dates are identified and overall
working will be manage in more effective manner which result in generating more revenue.
LEARNING OBJECTIVE 4
P7 The different types of financial statements and reporting mechanisms for organisations within
the travel and tourism industry.
Financial statements are written records that help in business activities as well as financial
performance. Financial statements are generally audited through government agencies, firms,
accountants and so on for ensuring accuracy of financing, tax and investing purpose. British Airway
is one of the leading airline organisation in the world, therefore it is very much important for them
to make proper financial statements so that they can gain knowledge about the profit and loss made
by them. There are several tools of financial statements explanation as follows :-
1. Cash flow statement : Cash flow is very important, as this will help British Airways in
gaining knowledge about the current position of cash in their organisation. In simple term,
cash flow statement help respective organisation in identifying that how well they are
generating cash for paying off their debts, expenses and so on. Cash flow statements simply
complements balance sheet as well as income statements.

Above mentioned Cash flow statement developed of British Airways is showing that Cash
flow from operational activities was £1981 millions. On the other hand, if it is talked about the net
cash used in investing activities was £855 millions and lastly, from financing activities were
approximately to £886 millions.2. Income statement : This is the statement which will help British Airways in gaining
knowledge about the income generating by organisation (Cohen, 2017). This also help them
in collecting information that how much their investment amount is generating income. Also
it have a P&L account which will help in detailing about the profit and loss made by
organisation via their investments.
3. Balance sheet : It is financial statements which provide overview of organisational assets,
liabilities as well as stockholders equity. British Airways always prepare balance sheet at the
Illustration 1: Cash Flow Statement, 2017

end of year for identifying amount of assets as well as liabilities of particular year. Balance
sheet formula is (Assets = liabilities + owner's equity).
P8 The importance and value of budgets for controlling business performance and identifying
variances.
Budget is a financial plan which is designed by organisations, so that they can fix the funds
which is required by them for performing some specific task (Grover and et.al., 2018). British
Airways is one of the biggest airline organisation on the world, and they use to make investigator in
their resources at very huge level. Therefore, for them it is very important to make proper budget
plans, which will help them in future. This also help them in gaining knowledge about the funds
which they are required to spend and also funds they required to invest (Sharpley, 2011). For
example, according to a study the tourism conditions of UK will get increased by 20 percent in just
1 year. Then it is important for British Airways to make plans which will lead them to increase in
their resources, and also help them in assigning some funds and budgets for it. Along with this, they
have to make coordination with business partners of them, so that their resources get increased
according to decided funds. For serving 20 percent more customers, it is estimated that British
Airways need to make about $1000 billions on to their resources, which include air crafts, boarding
services, security, housekeeping, reservation mediums. Below mention are some importance of
budgeting in British Airways :-
 Budgeting provide means of controlling income and expenditure of business. In simple term,
it provide plans of spending.
 It provide objective of an business firm in numerical term for specific time period.
 Budget assist in directing both revenue and capital resources in profitability manner.
CONCLUSION
From the above study it is concluded that, travel and tourism industry is one of the most
important industry in the world, and they use to make connection between different parts of world.
Also it is very important for organisation in this industry to make proper revenue management in
their organisation, which can help them in gaining knowledge about profit and loss of organisation.
Also it is important to make proper financial statements and budget plan, so that they can gain
information about the income of them via different investments.

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.
Chang, L. L., F. Backman, K. and Chih Huang, Y., 2014. Creative tourism: a preliminary
examination of creative tourists’ motivation, experience, perceived value and revisit
intention. International Journal of Culture, Tourism and Hospitality Research. 8(4). pp.401-
419.
Cohen, S., 2017. Decline, renewal and the city in popular music culture: Beyond the Beatles.
Routledge.
Oppewal, H., Huybers, T. and Crouch, G. I., 2015. Tourist destination and experience choice: A
choice experimental analysis of decision sequence effects. Tourism Management. 48.
pp.467-476.
Sharpley, R., 2011. The study of tourism: Past trends and future directions. Routledge.
Grover, V. and et.al., 2018. Creating strategic business value from big data analytics: A research
framework. Journal of Management Information Systems. 35(2). pp.388-423.
Leung, Y. F. And et.al., 2018. Tourism and visitor management in protected areas: Guidelines for
sustainability. Gland: IUCN.
Online
Revenue Management for Tourism and Hospitality Industries, 2019.[Online].Available
through:<https://mywestford.com/blog/revenue-management-for-tourism-and-hospitality-
industries/>

INTRODUCTION
This report will conduct a study on different stages of HR life cycle and also a study will
take place on performance management plan of revenue manager in British Airways.
LEARNING OBJECTIVE 2
P3 Review the different stages of the HR life cycle applied to a specific travel and tourism job role,
and their importance for retaining and developing talent.
British Airways is one of the leading organisation in the world, which use to provide their
products and services in airline sector. The service of this organisation is in different parts of world,
and use to connect about 1000 destinations (DeLacy and et. al, 2014). Therefore, for them it is very
much essential to make a work force which is full of well skilled employees and also it is very
much important for them to have employee who are working from long time period and also have
good experience with them. This all lead them in making a work force which is very much powerful
and have quality which will help them in providing their products and services in very effective
manner. As it is required for HR and Legal department manager of British Airways to make study of
HR life cycle, so that they can make retention of employees, and also can perform Talent
Acquisition & Planning with in organisation. Stages of HR life cycle is as follow :-
 Recruitment : This is first stage of HR life cycle, where manager of British Airways have to
analyse the vacancy in their organisation, so that they can take essential steps for for
recruiting new employees in their work force. For recruiting new employees, they can select
resumes and CV of candidates which are most appropriate according to their vacant job
demands. If it is talked about retaining individuals and developing talent within the business
organisation like British Airways then this stage basically plays a crucial role for the
business organisation. This could be understood with a good example, where it will be
required for HR manager of British Airways to focus upon giving all the details to
employees in regards to roles and job responsibilities.
 Selection : This is second stage of HR life cycle, where manager of British Airways have to
select the candidates which are most appropriate for vacant jobs. This will help them in
making a work force which is full of skills, and manager only need to groom them according
to their needs. When it comes to improve both talent and retaining, this process of HR cycle
could help British Airways in gaining maximum benefits in specified time frame. It will be
necessary for company's HR manager to look into qualifications, and job history of

candidates. As both of the things could make or break British Airways.
 Orientation and boarding : This is the stage of HR life cycle, where manager of British
Airways use to provide knowledge to their newly hired employees about their work, and
also use to explain the roles and responsibilities which they have to play in organisation ( Du
Cros and McKercher, 2014). Along with this, here manager of British Airways use to
provide appropriate training and development sessions to their employees according to
described roles and responsibilities.
 Performance management : This is the stage of this life cycle, where Human resource
manager of British Airways use to analyse the performance of each and every employee and
individual working in organisation. This will help them in taking steps and making strategies
according to their goals and objectives. Along with this, it help Human resource manager to
gain knowledge that which employee is working in very effective manner and which one is
not able to give their best. This all lead them in gaining knowledge that which employees
will they have to retain for long term and which need training and development sessions for
improving their performance.
 Succession planning : This is the stage which is also known as motivation. In this, human
resource manager of British Airways use to motivate their employees, so that their
performance get improved and they can give their best for attaining organisational goals and
objectives. This also help employees for improving their retention to long time in
organisation. For motivating employees they can use different techniques like promotions,
appraisals, bonus and other use by Human resource manager in British Airways which result
in increasing productivity as well as generating more revenue.
 Entry and exit : This is the last stage of this HR life cycle, where employees of organisation
want to switch due to new job and other problems. Therefore, HR manager of British
Airways use to make offers to them, and is employees love that offer then they use to retain
their position otherwise went towards exit.
P4 Develop a performance management plan for a specific travel and tourism job role, applying
techniques to resolve negative behaviour and to overcome issues of staff retention.
Performance management plan is used by organisations like British Airways for making a
list of roles an responsibilities a person have to play in an organisation, and make comparison
between their estimated performance and original performance ( Höpken and et. al, 2015). This will
help them in gaining knowledge that, in which area they are required some training and
development. Following is the performance management plan of revenue manager in British

Airways :-
Job Title : Revenue Manager
Department : Finance Department
Company : British Airways
Date : 28-03-19
Improvement Objectives Success Criteria Additional support
required
Objective outcome
Competition analysis skills
of current revenue manager
in organisation is not very
good. Therefore, British
Airways is not able to make
strategies and plans by
which they can gain some
competitive advantages. It is
very important for their
revenue manager to make
improvement in their skill,
so that they can gain some
competitive advantages in
future.
For making solution of
this problem, it is essential
for revenue manager of
British Airways to take
some training and
development sessions.
This will help them in
gaining knowledge that
how they can identify
competitive conditions in
market and how they can
make plans and strategies
for gaining some
competitive advantages.
Also, with training
and development
sessions, it is
important for
revenue manager to
study the different
strategies used
earlier by different
organisation for
gaining some
competitive
advantages.
This step by
revenue manager
of British
Airways, will help
them in grooming
their skills and
also lead them in
improving their
performance. This
will result in
gaining some
competitive
advantages in
organisation.
CONCLUSION
From the above mentioned report, it can be concluded that HR life cycle is very much
important for an organisation in travel and tourism industry, as this help them in retaining their
employees and also help in gaining report about the performance of individual in organisation.

REFERENCES
Books and Journals
DeLacy, T. and et. al., 2014. Green growth and travelism: Concept, policy and practice for
sustainable tourism. Routledge.
Du Cros, H. and McKercher, B., 2014. Cultural tourism. Routledge.
Höpken, W. and et. al., 2015. Business intelligence for cross-process knowledge extraction at
tourism destinations. Information Technology & Tourism. 15(2). pp.101-130.

LEARNING OBJECTIVE 3
INTRODUCTION
In this article, a study will take place on the legislation which an organisation of travel and
tourism industry have to follow, and also their impact on their decision making will get explained.
P3Explore specific legislation that organisations in the travel and tourism industry have to adhere
to.
Following the legislations are very important for organisation like British Airways, this will help
them in taking safe side from any problem (Legislation of UK, 2018). The legislation which they
have to follow are :-
 The Air and Road Act 1979 : AS per this act carrier is needed to make sure that tourists on
board within journey are safe as well as secure from any damage. Because carrier will be
liable for the provision of required measures involved in maintaining safety regulations.
Along with this, safety measures ensure that each and every passenger will be treated
equally and avoid situation of injury, death or loss of luggage.
 New package travel regulation 2018 : This regulation was introduced in 2018 and apply to
holiday travel arrangements as well it cover tow types of travel arrangements such as
package holidays and linked travel arrangements that have different levels of protection.
P6 Using specific examples, illustrate how company, employment and contract law has a potential
impact on business decision making in the travel and tourism industry.
For organisation like British Airways, it is very important to make changes in their decisions
according to the rules and regulation of nation. This will help them in keeping themselves safe from
different legal issues (Mowforth and Munt, 2015). Some of these legislation which have power to
affect the decision making of them are as follow :-
 Company law, 2006 – This law regulate corporations which are formed under Companies
Act 2006. it include several rules and regulation which have to be follow by every
organisation for working within lawful practices. Thus, company law impact widely on
decision making of British airways as they have to keep all these rules involved within
company law in their mind while taking decisions. For example: If British Airways is not
implementing regulation of company law in their working then it may result in unlawful
activity and respective organisation have to pay some amount of penalty against it. As well it
some cases there is chances of winding up business firm.

 Employment law, 1996 – For an organisation employees are their important part so for
welfare of staff employment law was introduced. It involve all the policies which design for
favour of personnel such as equality, wages, working hours and so on. Thus, it is
responsibility of British Airways to involve all the rules and regulation of employment law
within their working. So that, fair treatment will be provided to staff members. Apart from
this, employment law have its wide impact on decision making as British airways have to
take decision within favour of the staff members as it will result in conducting lawful
practices. For instance, if decision by British Airways are not taken in the favour of
employees it will result in high turnover ration. As well in some situation staff may sue
company in court.
 Contract law – In contract one person make an offer and another accepts it for legal contract
there is requirement of both party agreement. While being in contract it have to be ensure by
both parties that they are following rules and regulation related to it. Contract within British
airways and their customer have to be within every legal aspects because it have wide
impact on decision making. For instance, while taking decision related to contract have to be
taken by keeping all rules and regulation within mind.
If it is talked about, specific law which is being followed by British Airways with in the T&T
business sector and this is given underneath:
Aviation Law, 2019 – This is being considered as one of the act, which helps in resolving most of
common issues in regards to the services offered by the company, this majorly includes aircraft
trading, leasing, finance and dispute resolutions, that could help British Airways in enhancing the
profit margins in specified time frame.
CONCLUSION
By above study, it is concluded that, there are ample number of legislation which an
organisation of travel and tourism have to follow, so that they do not get fixed in any type of legal
problem.

REFERENCES
Books and Journals
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and new
tourism in the third world. Routledge.
Online
Legislation of UK. 2018. [Online]. Available through : <http://veerpalkaur.blogspot.com/>./