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