The Travel and Tourism Business Toolkit

The Travel and Tourism
Business Toolkit

Contents
INTRODUCTION...........................................................................................................................4
LO 1.................................................................................................................................................4
P1 Discuss the rationale and principles of revenue management for the travel and tourism
industry.........................................................................................................................................4
P2 Investigate how a specific sector of the travel and tourism industry applies revenue
management tools to generate and maximize profit....................................................................4
M1 Analyze the impact of differentiated pricing strategies on revenue management in a
specific sector of the travel and tourism industry........................................................................5
LO 2.................................................................................................................................................5
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....................................................5
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....6
M2 Evaluate the importance of the HR life cycle in relation to strategic talent management and
overcoming issues of staff retention ...........................................................................................8
TASK 3............................................................................................................................................8
P5 Explore specific legislation that organizations in the travel and tourism industry have to
adhere to ......................................................................................................................................8
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......................9
M3 Using specific examples, examine the potential implications of regulations, legislation and
standards on decision-making in the travel and tourism industry..............................................10
P7 Explore the different types of financial statements and reporting mechanism for
organisation within the travel and tourism industry ..................................................................10
P8 Explain the importance and value of budgets for controlling business performance and
identifying variances..................................................................................................................12

M4 Interpret financial statements and reports for organisations within the travel and tourism
industry.......................................................................................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Tourism includes all activities wherein people travel to and stay in places that are usually
outside their usual environment. It can be for different purposes like business or leisure and
contributes to the overall development of an economy significantly (Akan and et. al., 2015).
There are various organizations that operate within the travel and tourism industry across the
globe. Organization chosen for this report is Topdeck, a UK based tour operator that provides
trips for people. The company was founded by Graham Turner in the year 1973 and is
headquartered in London, United Kingdom. The report examines the key principles of revenue
management for tourism and travel industry. It also includes an assessment of how can human
resource life cycle can be managed.
LO 1
P1 Discuss the rationale and principles of revenue management for the travel and tourism
industry
Revenue Management can be defined as applying analytics that forecast the consumer
behavior at the micro-market level and thereby optimize the product availability as well as price
in order to maximize the growth of revenue. The rationale of organizations within the travel and
tourism industry behind implementing a revenue management strategy is to predict, forecast and
optimize their inventory (Board and Skrzypacz, 2016). The various principles of revenue
management in context of Topdeck are explained below –
Market Segmentation – This involves subdividing the markets, channels as well as
customers into different groups based on their needs.
Forecasting – This is another principle off revenue management which involves
predicting the demand based on different quantitative methods and logic.
Inventory Pooling – Inventory pooling in revenue management wherein the inventory is
integrated at a central location rather than stocking up the same at a central location (Boniface,
Cooper and Cooper, 2016).
P2 Investigate how a specific sector of the travel and tourism industry applies revenue
management tools to generate and maximize profit
The travel and tourism industry consists of different sectors like accommodation, food
and beverage, transportation, travel services etc. Topdeck primarily deals with accommodation

as it provides trips to people living across various geographic locations. The revenue manager in
the organization uses various revenue management tools in order to generate and maximize
profits. The same are explained below –
Property Management System – This revenue management tool helps in making the
workflow easier and allows the front desk to create a perfect experience for the guests.
Booking Engine – This is one of the most important tools that assists in managing the
direct point of sale within the organization. The tool facilitates international reservations without
any kind of human intervention.
M1 Analyze the impact of differentiated pricing strategies on revenue management in a specific
sector of the travel and tourism industry
Differentiated pricing strategies can be defined as strategies that allow an organization to
adjust the pricing which is based on various situations. In travel services, differentiated pricing
strategies involve selling the services to different customers at different prices. This means that
sometimes certain customers pay less for a trip as compared to others. This type of pricing
strategy is strong and effective (Bratton and Gold, 2017). It can have a positive impact on an
organization as a result of which its profit is maximized.
LO 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
HR life cycle introduces to the continuous process or procedure of integrated human
resource activities. It means that the cycle of human resource starts with business strategies that
is translated into human resource strategy, design of an organization, HR activities such as
recruiting and selecting, training and development and many others (Carr, 2016). All these are
essential strategies because it helps business organization in retaining of talented workforce.
There are different roles played by human resource within travel and tourism sector. These roles
are define as below:
Recruitment and selection: This is an important role played by HR that assist business
organisation in recruiting and selecting of best candidates. This is important for human resource
manager to recruit and select best candidates that outputs in improvement of business growth and
development.

Training and development: This is another role that is essential and significant for HR in
improving of knowledge and understanding among employees. This will facilitate Topdeck in
achieving of better outcomes within minimum time period and in successful manner.
Importance of HR roles in retaining and developing talent
Effective recruitment and selection is important for Topdeck in retaining and developing
of best talent in the workplace. In the workplace, company become able to recruit and select best
candidates that turn to effect on business performance by retaining as well as developing best
candidates within minimum period of time (Cascio, 2015).
Training and development is also important for Topdeck in retaining of top talent for
longer time period and in successful manner. With the help of training, company can easily
improve skills and knowledge of their employees that turn to impact on business performance by
retaining talented employees.
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 introduces to the process of helping and enabling workforce to
work within a manner that allows the company to effectively and efficiently meets its
requirements. In this business managers are capable to communicate all information with
workers and gives feedback on their performance.
Plan: This is an important and first stage of professional development plan that must be
focus for business manager of Topdeck to plan an effective strategies of measuring employees
performance effectively. These plans as well as standards are set by the human resource team in
accordance to the strategic plan of the company.
SMART Goals
 To enhance strategic operational susceptibility of business manager by 25% as well as
retain for more than 4 years of period in the organisation. To improve positive behaviour of business owner towards business's capacities as well as
resources to enhance customer base by 40% in next 1 years of time period.
Techniques used to overcome negative behaviour as well as overcome problems of staff
turnover

Taking feedback's on regular basis: This is an important technique that will help
business manager or owner of Topdeck. For this technique, company will collect feedbacks from
the employees about their performance and many other. This will be essential for company in
reducing the problem of staff turnover in effective and efficient manner.
Providence of monitory and non-monitory benefits: This is important for company to
provide monitory as well as non-monitory benefits to their employees who are capable. This will
assist company in retaining of best and talented workforce within less period of time and in
successful manner.
Adoption of Personalized approach: One of the essential aspect which support to over
come from the common problems of high turnover of employee is regarding non consideration of
their situations and views. This approach assist in more effective consideration of all candidate
irrespective of pursuing some common standard. Therefore, it is important for business
organisation to retaining talented successfully and effectively.
The Performance Management Plan for Tourism Operations Manager at TopDeck is
discussed below:
Planning SMART
Goals
Performance
standards
Coach Techniques
used to resolve
negative
behaviour and
overcome
issues of staff
turnover
Review
At this phase,
the
performance
reviews are
shown to the
manager and
a elaborate
outlay is
constructed
To enhance
strategic
operational
susceptibility
of manager by
25% and
retain for more
than 4 years of
time period
The very first
and essential
standard of
performance
will be quality,
which will be
included some
activities such
as bifurcation
Assistance of
human
resource team
would be
given in this
stage to make
sure
enhancement
in every
The very first
aspect linked
with solving
bad and
improper
behaviour will
be taking in
consideration
their personal
360 Degree
Appraisal
will be
accepted by
the company
to review the
level of the
Tour

about the
creation of
their
competence
as well as
other skills
about their
job roles.
within the
company.
of target
market, trend,
assessing
budgets, etc.,
with agenda to
enhance
operational
capacity of
business
manager
lagging
feature in the
job role.
reviews as well
as opinions.
competence.
M2 Evaluate the importance of the HR life cycle in relation to strategic talent management and
overcoming issues of staff retention
HR cycle is more important and essential because it helps business organisation in
managing talent as well as overcoming the staff retention issue effectively (DeCenzo and et. al.,
2016). Human resource helps business organisation by recruiting talented workforce, providing
training etc. These are important for company in retention of talented employees, by providing
monitory and non-monitory benefits is biggest a main and essential way for overcoming the staff
retention effectively. There are different role or functions of human resource such as recruitment
and selection, training and development, providence of monitory and non-monitory benefits etc.
All these are major advantages of HR life cycle that are important for business organisation in
retention of top talent as well as reduction of high employee turnover effectively and efficiently.
TASK 3
P5 Explore specific legislation that organizations in the travel and tourism industry have to
adhere to
There are different types of legislation that are useful for Topdeck in improvement of its
business performance effectively. Some legislation will be defined as below:
Food Safety Legislation Act, 1990:- Main purpose of this legislation is to gives the main
responsibilities of organisation for their food services. This legislation is to make sure that

company serve or sell good quality products or services to the customers. The managers of
Topdeck emphasis on food law rules to deal with customers food safety with health problems.
Trade Description act 1968: One of the essential and useful act which regulate the laws
about providence of the actual and real data by the Topdeck. Company is penalized or punished
on the disbursement of the incorrect data to the consumers (Easton and Sommers, 2018).
Transport Act 1985: This is another act which is given by the government for
overcoming the negative or unfavourable effect of travel and tourism company activities over
business environment. This will regulate the regulations which restricts the business to pollute
the environment in time on carrying tourism activities.
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
Business decision making introduces to the process of decision taken about business
polices, procedures and activities after taking considerations into different factors.
Contract law: In this law, travel organisation and business must known that they are
bound wit each other in legal manner. For this, travel organisation have the right and
responsibility to claim the compensation or recompense if the travel and tourism organisation is
not consummated his promise (Painter and Holmes, 2015). For example: If Topdeck don't carry
out its obligation, it is reasoned to be break of written agreement which lead business to bear
compensate as well as legal expenses the another organisation with whom business did contract.
It effects on the goodwill and brand image of the company in negative way. Therefore, business
organisation should think regarding the conditions and terms of the contract as well as then enter
into the contract.
Employment law: This is another law that covers how and when an organisation can
recruit workers, when the workforce can work as well as what should they pay, company must
pay to the workers for the work. For example: these laws give business organisation guidelines
for organising and operating their business within the legally framework of the country. This
would track business organisation to operate their business operations or functions smoothly
without any politically and legally problems.
Company law: This law enforcing the responsibilities, organisations and its operations
as well as financial aspects of the business. Also, organisation also has to register its organisation

with the company houses. For example: If company follows all business laws that will support
company in conducting of its business operations successfully.
M3 Using specific examples, examine the potential implications of regulations, legislation and
standards on decision-making in the travel and tourism industry
Regulations are important for the growth and success of an organisation. These laws are
Food Safety Legislation Act, 1990, Trade Description act 1968, Transport Act 1985, Contract
law, Employment law, Company law etc. All these are important and essential roles that helps
business organisation in making of effective decision about the company (Pavlova, 2017).
Health and safety Act 1994: It is an obligation on all the employers that they have to
comply with all all safety standards and laws. This impacts the decision-making in the manner
that they must adhere otherwise have to face negative consequences.
Equality Act 2010: This brings an obligation over the all that must treat employees
equally. It has impact over decision making that they must comply with all rules and standards
otherwise have to face negative consequence.
TASK 4
P7 Explore the different types of financial statements and reporting mechanism for organisation
within the travel and tourism industry
It is must for each and every organisation to build financial statements and report within
specific period of time. Financial statements includes the information about organisational
transactions along with expenses and incomes. These are generally common in all different
organisations within various industries (Wildavsky, 2017). The main reason behind their
similarity is adherence of international standards of accounting. The accounts which are framed
on yearly basis includes profit and loss account, balance sheet, cash flow statement and fund
flow statement. So, all the organisations including Topdeck within travel and tourism industry
has to build these accounts on yearly basis by adhering international accounting standards. The
reporting mechanisms are also of different types. These are followed by organisations on the
basis of their own requirement. Th one which is followed by the management of Topdeck for
reporting of their financial requirements is releasing of annual reports on their official website.
The detailed level description of all these different determinants is provided below;
Profit and loss Account: This is also known as income statement. This includes the
entry of all different transactions of an organisation occurred during the period of one financial

year. This majorly includes the entry of two major types of transactions such as expenses and
incomes. In the end of the year, this help in determination of the profit and loss of an
organisation. The main reason behind the development of this account is to ascertain the
financial viability of an organisation. This will help an organisation to made decisions about the
factors which needed to remove or focusing more for attaining success in future. This will also
help the stakeholders of an organisation to determine the financial position so they can contribute
accordingly.
Balance sheet: This is the financial statement of an organisation that shows the
information regarding assets and liabilities. This will help the management to determine net
assets and net liabilities. The amount of net assets shows the value that have by an organisation
in form tangible or intangible (Walsh, 2015). On the other hand, liabilities hows the debt of an
organisation which thy have to pay off in future period of time. The will help the management to
make the financial decisions so they get clear success in future. The significance of this
statement is similar for stakeholders also because contributes in ascertaining value of an
organisation in market. This ultimately help them to determine that how much they further
needed to invest or disinvest from an organisation.
Cash flow statement: This is the financial statement that depicts the information
regarding inflow and outflow of cash within an organisation. This is important for the
management to build this statement because aid in ascertaining the position of an organisation in
terms of cash in hand and payment of debts. Its formulation includes three activities such as
operating, investing and financial (Penman, 2016). The completion of these activities help to
determine in last about the positive and negative amount of cash. This is important to build from
management side because aid in ascertaining unnecessary amount of expenses that contributes in
the exercise of improving overall cost and reducing profit margin. The benefits that will be
gained by an organisation from its formulation includes higher profit margin, reduction in
amount of unnecessary expenses and better position of cash in hand.
Annual report: This is the reporting mechanism that help in deliverance of financial
information of an organisation to stakeholders and general public This includes the compilation
of all the information from beginning to the end or financial or non financial in the report format.
This also consists copy of all financial statements that prepared by an organisation during the
period of one financial year. This report is important from the point of view of both i.e.

organisation and public. This help an organisation to gain the image among stakeholders and
public. While, public and stakeholders get the benefit to made decisions about investment within
an organisation or not (Taylor and Emir, 2015).
P8 Explain the importance and value of budgets for controlling business performance and
identifying variances
There is huge value and importance of budgets in exercise of controlling business
performance and identifying variances. Budgets having the main purpose of presenting standards
that help the managers and employees in performance of functions. This also help the
management of an organisation that they will easily identify the variances in the performance of
employees when they not able to meet the standards. The different number of importances on the
basis of budget functioning regarding controlling business performance and identifying variances
is presented below;
Controlling business performance: This is the process that includes the idea of
controlling business performance on the basis of guiding employees of an organisation by the use
of budgets. Guidance helps to improve knowledge and working ability.
Identifying variances: Budgets include standards. This help to identify variances and
recommending suggestions that help to improve performance.
M4 Interpret financial statements and reports for organisations within the travel and tourism
industry
It is interpreted from the financial statements of an organisation that they have good level
of business operations that enables them to generate significant amount of profit. Also,
ascertained from the financial statements that they have good level of management that help in
completion of objectives on time (Van der Stede, 2015).
CONCLUSION
It has been concluded from the above report that there is huge role of accounts in the
improvement of organisational functioning whether it belongs from any industry. This will help
the management to improve functioning and effective decision making so they can targets within
stipulated period of time.

REFERENCES
Books and Journals
Akan, M. and et. al., 2015. Revenue management by sequential screening. Journal of Economic
Theory. 159. pp.728-774.
Board, S. and Skrzypacz, A., 2016. Revenue management with forward-looking buyers. Journal
of Political Economy. 124(4). pp.1046-1087.
Boniface, B., Cooper, R. and Cooper, C., 2016. Worldwide destinations: The geography of travel
and tourism. Routledge.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Carr, C.T., 2016. Delegated legislation. Cambridge University Press.
Cascio, W.F., 2015. Managing human resources. McGraw-Hill.
DeCenzo, D. A. and et. al., 2016. Fundamentals of Human Resource Management, Binder Ready
Version. John Wiley & Sons.
Easton, M. and Sommers, Z., 2018. Financial Statement Analysis & Valuation, 5e.
Painter, R. and Holmes, A., 2015. Cases and materials on employment law. Oxford University
Press, USA.
Pavlova, K., 2017. Revenue management system for the hospitality industry–essence and
elements. Economics and computer science. (1). pp.42-71.
Penman, S.H., 2016. The design of financial statements.
Taylor, S. and Emir, A., 2015. Employment law: an introduction. Oxford University Press, USA.
Van der Stede, W.A., 2015. Budgeting and management control. Wiley Encyclopedia of
Management. pp.1-7.
Walsh, D.J., 2015. Employment law for human resource practice. Nelson Education.
Wildavsky, A., 2017. Budgeting and governing. Routledge.