Assignment: The Travel and Tourism Business Toolkit
Added on 2021-01-01
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The Travel and TourismBusiness Toolkit
Table of ContentsINTRODUCTION................................................................................................................................3LEARNING OBJECTIVE 1................................................................................................................3P1 The rational and principles of revenue management for the travel and tourism industry......3P2 How a specific sector of the travel and tourism industry applies revenue management tools to generate and maximise profit......................................................................................................5LEARNING OBJECTIVE 4................................................................................................................6P7 The different types of financial statements and reporting mechanisms for organisations withinthe travel and tourism industry....................................................................................................6P8 The importance and value of budgets for controlling business performance and identifying variances......................................................................................................................................8CONCLUSION....................................................................................................................................8REFERENCES...................................................................................................................................10INTRODUCTION..............................................................................................................................11LEARNING OBJECTIVE 2...............................................................................................................11P3 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.................................................11P4 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................12CONCLUSION..................................................................................................................................13REFERENCES...................................................................................................................................14LEARNING OBJECTIVE 3..............................................................................................................15INTRODUCTION..............................................................................................................................15P3Explore specific legislation that organisations in the travel and tourism industry have to adhereto................................................................................................................................................16P6 Using specific examples, illustrate how company, employment and contract law has a potential impact on business decision making in the travel and tourism industry....................16CONCLUSION..................................................................................................................................17REFERENCES...................................................................................................................................18
INTRODUCTIONTravel and tourism is very big in size and the main work of them is to connect different partof world by charging some specific money for it. The study of this report is based on BritishAirways, it is one of the biggest organisation of UK which provide product and services in airwayssector. They are also one of the world's leading premium airline, they are headquartered atHeathrow, 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 1000destinations. In this report, as study will take place on principles of revenue management along withtheir importance, also it's tool's application for British Airways. Also a study will take place on howimportant the budget is for them and also different types of reporting mechanisms and financialstatements will get explained.LEARNING OBJECTIVE 1P1 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 aswell as increasing profit. As well it is all about selling same product to right customer withinspecified 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 revenuemanagement as yield management. This strategy is based on understanding, anticipating as well asinfluencing customer behaviour. So that profit of an organisation working in travel and tourismindustry 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 asfollow :-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 helpthem in targeting a specific group of customers, which have different behaviour ( Budeanuand et. al, 2016). This will help British Airways in making offers which that can fulfil theneed of their targeted customers and also their budget level.2.Historical Demand and Booking patterns (demand calendar) : This principle comebefore budget and forecasting of products. This also helps in making informed decisions forpricing which are based on data and statistics. This is a yearly road map which help inbuilding revenue management strategies. It use to give information about pattern of demandin history and related them to future events. In this, British Airways use to study all theevents which can affect their demands, in both positive and negative manner. It is alsoimportant for them that they must identify these events on regular time period, so that theycan gain knowledge about impact of these events on their demand. 3.Demand Forecast and Displacement Analysis : Demand forecasting in tour industry canbe initialized by making a budget, as it is one of the most important forecast for anorganisation. For making an accurate forecast, it is very essential for British Airways todiscuss some elements which are :- unconstrained demand, stay patterns, booking pace. It isvery important for them to make a realistic budget, but also it is essential for them to makebudget where they can set new target along with time. Also the budget of organisation musthave 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 companyincrease their online visibility? Etc.4.Pricing and Inventory management : For an organisation like British Airways, pricemanagement is refers to governance of different price of various products and servicesaccording to their demands ( Oppewal, Huybers and Crouch, 2015). For example, BritishAirways have data of their different customers then they can provide different products ofdifferent price to them, so that they can attract ample number of customers towards theirproducts and services. In this, British Airways can provide offers and discount to thosecustomers, which love to make booking earlier. Along with this, they can provide somediscount tin low season and also can charge high prices in boom of season. In presentcontext, British Airways could effectively utilise differentiated pricing strategy in order tograb the attention of travellers from all over the world. This is being considered as adifferential pricing method, that could help British Airways in pricing the same services withdifferent prices, considering the form of the service, time of delivery, payment terms, andfocusing upon the customer segments as well.If it is critically analysed then, using this type of pricing strategy could help British Airways
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