Travel and Tourism Business Toolkit

This report provides a comprehensive toolkit for the travel and tourism industry, covering revenue management, human resource strategies, legal considerations, financial statements, and the importance of budgeting. It aims to guide businesses in optimizing their operations, attracting customers, and achieving profitability.

The Travel and
Tourism Business
Toolkit

INTRODUCTION...........................................................................................................................1
P1. Rational and principles of revenue management in relation to travel and tourism industry. 1
P2. Specific sector of tour and travel industry applies revenue management.............................3
P3. Different stages of HR life cycle and its importance in retaining and developing talent......3
P4. Performance management plan.............................................................................................4
P5. Legislation required for travel and tourism industry.............................................................6
P6. Impact of employment and contract law n business decision making..................................6
P7. Different type of financial statements...................................................................................7
P8. Importance and value of budget for controlling business performance................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Travel and tourism is one of the largest sector in world, UK comes on the 6th rank in
biggest tourism destination in world. Peak time of domestic tourism in UK is during bank
holidays or the summer’s times. Tourism consist different set of activities like travelling, staying
and other fun activities. Hospitality is also the part of travel and tourism industry, they both work
for the same purpose and that is to provide the required services to the travellers. This industry
has been divided into four parts i.e. lodging operation in which comes services related to motels,
hotels, resorts, conference centre, B&B, casino etc. Other is transportation service which
includes services related to bus, taxi, bikes, railways, air planes and food & beverages. After that
retail stores which include art shops, markets, gift shops etc. and at last fun activities which
include entertainment, recreation, amusement parks, sporting events, ethnic festivals etc. this
report will help in understanding the complete tour and travel toolkit like importance of revenue
management in the travel industry , impact of pricing strategy on revenue management. Further
in this this report concept of human resource ad their strategy will also be discussed. Some legal
issues related to tour and travel industry will also be analysed (Oddone and Padilla, 2016).
P1. Rational and principles of revenue management in relation to travel and tourism industry
Revenue management is a strategy or technique which tour & travel industry uses for
controlling costs or overbooking prices from the airlines and hotel bookings. This is also used by
industry to increase its revenue. In context of Haggies adventure, their concept related to revenue
management is to effectively evaluation of ADR and providing good services to the travellers as
well as at good prices which attract more customers to take their services. For doing all this, it is
important for Haggies adventure’s managers to focus more on their services which they are
providing and how can they cut most of the costs for attaining gains and profits. other than this
their major responsibility is to analyse the requirement & demand of consumers so that they can
tap it to satisfy them and in return can increase their sales (Willumsen and de Dios Ortúzar,
2016).
Rationale and principle of revenue management
 Revenue management give benefits to the company by cutting extra cost of their tour
package and in return to it, they can invest it in launching new services and products in
different range. This helps the organisation in targeting different income group of people
which in return increase their customer base. It also increase company’s productivity as
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well as its profitability, it help them to conduct their business activities very smoothly
without any hurdles. Cutting costs and lower prices of services attracts travellers, it will
help Haggies adventures to increase their customer base.
 Frequency: This is about number of times a tourist travels and stays so that we can
remove away from his home at different place. The frequency of taking trips vary
person to person. A tourist will visit a place more often on repeat basis which has been
able to provide all those experiences which he wished for. A person will avoid a trip who
has recently returned from one. From the viewpoint of tourists, there has to be a
considerable gap between two or more trips. This factor is majorly related to finance
which needs some time to save money for next tour.
Principles of revenue management
 market segmentation- This is a component in which Haggies adventure segment the
market into different groups so that they can offer according to their demands. It help the
company in analysing the requirement of the trip a person is planning, for example it can
be a business trip or it can also be a fun or leisure trip. Market segmentation help the
organisation to target different variety of people and it gives them a clear distinction
about the individuals. It is important for Haggies adventure to identifying the period of
travelling by an individual and what revenue company will get from it, from their
complete package per client. Other than this it also help in identifying lead time,
cancellations and no show ratio etc.
 historical data and booking pattern- This is the another principle of revenue
management in which Haggies adventure is required to analyse their previous data
because it will bea great help to the company. It is important because it will help the
company in formulating plans and it also help in identifying the current needs by
contrasting it with the previous need of customers. It maximises the organisation’s
revenue as well as its profitability.
 Overbooking- In this principle of revenue management, Company take overbooking
from the travellers irrespective of unavailability of the services. They do this so that they
can get away from the cancellation problems. There are many customers who book the
package through the company but because of any reason they cancel it and as return it
impact the revenue of the organisation. So for eliminating this situation, Haggies
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adventure is allowing overbooking to increase their revenue and to reduce the risk of last
moment cancel issues. Financing: It is about the finances that will be required for booking hotels, tickets of
museum or historical places, money that will be spent on shopping, tickets of
transportation to move within the country etc. Without sufficient money, no trip can be
pleasurable and successful. Furthermore, services can be upgraded when paid more
amount. Thus, budget can increase or decrease probability of finalising a tour.
Conversion rate of currency should also be considered while making adjustments in
budget. In peak time, the prices of all the services including auxiliary goes up due to high
demand. This can force a person to change the decision.
Revenue management tool-
It include two tools first is discount allocation, in which Haggies adventure provide
discounting services to their customers by offering them different kind of discount offers on
advanced bookings or 1 week package etc. this will help organisation to increase their clients so
that their profit margin remain same and they can attract vide range of travellers (Angeloni,
2016). Company can also offer these discount facility to their clients on the basis of seasons like
low prices for the trip in winters as compare to summers, this will increase organisation’s sales
of winters. Second is capacity utilisation which says that it is the responsibility of Haggie’s
manager to utilise all the available seats in their trip to maximise their profits. Company should
use their capacity effectively as well as efficiently so that it does not remain ideal. For example if
according to company package they allow only 5 families in their each trip then they have to
utilise all those 5 families so that their capacity does not remain waste (Khazai, Mahdavian and
Platt, 2018).
P2. Specific sector of tour and travel industry applies revenue management
` There are so many different sectors working under tour and travel industry and each one
is equally important to manage by the Haggies adventure. For growing in the market to develop
itself, company need to control their functions and operations of every department. Revenue
management is applied in many of the sectors of Haggies adventure like food & beverages,
events and conferences, travel trade, accommodation etc. company’s accommodation part is
applying revenue management tool for gain and profitability:
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Accommodation in tour and travel include hotels, motels, B&B, hostels etc. this sector is
growing very fast because it satisfies the need to the travellers very much. Customers want to
book best hotels to stay or luxurious hotel to stay, it has also become a status symbol for so many
people. Hotel sector is also providing employment to the citizen of country which is improving
the economic development of the country. For taking the benefits of revenue management by
tour and Travel Company it is the responsibility of their manager to choose an appropriate tool
and strategies for generating profitability.
They can offer wide range of offers to their customers to attract the travellers. For this
revenue manager has to ask for the feedback from the customers, so that they can find out where
they are lacking behind in satisfying their needs and what exactly travellers expect from them to
serve. For getting positive revenue, Haggies are offering many complimentary offers to their
customers like free breakfast in 2 days stay in particular hotel, they are also providing free wifi to
their customers and some memorable picture to their customers. It will increase the customer’s
attraction toward the company and Haggie’s market share will increase, which in return increases
the profitability of the company.
P3. Different stages of HR life cycle and its importance in retaining and developing talent
There are number of different stages that come in the life of HR while working in an
organisation (Gurol and Bilen, 2015):
 Recruitment: this is the first stage of the HR life cycle in which they has to hire
right candidate for the right job for the company. This is because hiring plays an
important role in every organisation including Hggies adventure, as it help in
productivity and growth of the company. For recruiting a right candidate, HR
professionals need to make a proper plan in which they have to analyse the position
which is needed to be filled and what qualities are required in the employee. Other
than this they need to plan a interview if they want a written test or not, about
multiple interviews etc. When right candidate is appointed for right place then they
can be retained for longer time duration in the firm. As well as employees skills and
talent can be utilized at optimum level. This will indirectly help organization to
raise productivity level in the market.
 Education- this is the another stage of HR life cycle in which after hiring is done,
they are require to train or educate new employees so that they know what is their
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roles & responsibilities are in the organisation. For doing this HR professionals
need to communicate with Design a performance management plan. When staff
members are educated properly regarding their job roles then they can be retained
for longer time duration as well as talent can be raised which will result in raise of
productivity level.
 Performance management plan is also known as performance action plan, it is an
instrument to yield employees with performance inadequacy, the opportunities to
succeed. It is important because it helps the employees to line up their goals with
strategic objectives and planning of their company (Hur and Lee, 2017). Carnival
corporation &Plc is facing the problem related with waiter and waitress are not
happy with the working scenario and deny to work with team leaders. The
performance management plan are discussed as follows:
 Plan: In this accumulation of distinguished roles and responsibilities are done
which helps firm to carry out business targets in effective manner. Here, Carnival
corporation &Plc should adopt certain policies in order to serve quality food. By
this staff members will get transparent idea of work and enable them to accomplish
goals on time. When the plan is designed in proper manner it can be retained and
executed in the business accordingly. Employees talent can be used to frame new
plan in the market so that best results can be seen.
 Implement: Carnival Cooperation Plc should apply the plan effectively in the
working environment so that productive results can be achieved (Rogerson, 2015).
Work according to the plan should be assigned to the customers so that so that error
can be eliminated from the business and can bit it's competitors. When effective
plan is designed then it can be implemented in firm so that growth and expansion of
business can be done accordingly. When plan is executed properly then customers
needs and preferences can be fulfilled respectively.
 Evaluate: On continuous basis Carnival Cooperation Plc should examine the
performance of the employees so that improvements can be done in the initial stage
and best outcomes can be seen. The employees performance should be evaluated so
that improvements can be done and best results can be attained for longer time
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duration. By doing employees skills can be uplifted by training and potential staff
can be retained back.
 Feedback: Carnival Cooperation Plc provide facilities to the customers to give
their feedbacks regarding firms performance. Company does follow up feedbacks
so that corrective course of action can be taken for accomplishing goals. them about
the Haggie’s culture and values, train them until they completely get their job,
assign a old employee with the new one sor the support and at last introduce the
employee with every other staff. When feedbacks are positive then potential
customers can be retained by motivating them to work effectively. But if they are
negative then they can be provided training sessions so that skills can be improved
accordingly.
 Motivation – In this stage of HR life cycle motivation plays an important role for
the new employees. This is because in starting day’s chances of employee turnover
is more so it is important for the mangers to focus on it. This can be done by
keeping them engaged in work so that they also feel as a part of company. Other
than this good compensation, benefits and growth opportunities should be offer to
them. This is not enough, employees are even provided with the recognition if they
perform good and also give appreciation of what they do and how much they
contribute in the company. By motivating staff by adopting different motivation
theories they can be retained back as well as their skills can be enriched
respectively.
 Evaluation- At this stage of HR life cycle, employee’s performance is evaluated to
know the strength & weaknesses of each employee. Reviews are given to
employees about their performance so that they can improve it if required. By
examining the skills of the workers and conducting training sessions for staff
members potential employees can be retained back.
 Celebration: This is the last stage of human resource life cycle in which employees
are reenergized by getting reward for their hard work. Many other benefits are
provided to them as a thank giving gesture which actually motivated employees to
perform with that zeal again. When for extra work benefits or incentives are given
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it indirectly motivates employees from within and directly raise productivity level
on continuous basis.
All these stages of human resource life cycle plays important role I motivation employees
as well as retaining them. After recruitment stage, selected candidate are given proper
training about their job duties so that they can per from well. This is done because
organisation wants to develop itself.
P4. Performance management plan
It is a plan which organisations make in advance for performing better. To is important for the
Haggies adventure to have a performance management plan so that they can serve their
customers without facing any problems (Borman and et. al., 2018). For example, it has been seen
that while the tour; company faced some problems related to food, but because of their good
plans and strategy they easily get overcome from that problem and came with a good solution.
These activities also attract customers and increases travellers trust on tour operator & the
company. Haggies performance management plan is -:
 Access current performance- It is very important for Hagges adventure to
determine the current performance of the organisation. This performance
management include resources, man, material, finance etc. Company analyse their
current management process to find out the required changes in it. Measurement of
current performance is also important for the organisation so that they can compare
it with the previous one to find out their improvements and to plan more for future.
 Set objective and goals: next step in performance management process is to set
some goal of objective for the company. It tell the purpose of the existence of
organisation, it help Haggies in assigning appropriate activities t achieve the goal of
the organisation. After determining the goals, company form some team so that
their profit can be maximised and goals can be fulfilled in effective manner.
 Create and action plan- After setting the goals for the company next step is to
create a plan that soon can be converted into action. Haggies adventure needs to
make a plan to widen the scope of their company and to achieve the goals which
they set earlier. At this stage company has to plan from starting to end so that
employees are clear about their roles as well as responsibilities.
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 Keep track progress- This is the last step in which company track the performance
of organisation as well as the employees. They do it to analyse the progress and to
compare the previous performance. Tracking performance help organisation in
bringing changes or innovation into their services. for example after tracking the
progress, Haggies find out that their customers are not satisfied in that situation
they will plan something which can satisfy their customers. This will also help in
determining the area of strength and weakness of the company and what efforts are
required to put to improve it. Tracking progress is good for showing employees
their progress and what more they need to do for achieving the goals or objective of
the organisation.
These all activities are important for Haggies adventure for solving the problems. this will help
organisation to perform better as compare to their competitors and also helping satisfying the
customers (Kwok and et. al., 2015). With proper plan and tracking progress, company can reduce
the employees retention and can motivate them to work for achieving the goals of the company.
Design a performance management plan
Performance management plan refers to as performance action plan, it is an device to
examine employees with performance inadequacy and the opportunities to succeed. This is
essential because it aid the staff members to frame their objectives and planning of their
organization. Here, Haggies adventure is facing the difficulty related with waiter and waitress are
not happy with the working premises and denied to work with team leaders. However, the
performance management plan are explained as follows:
Plan: Here, assembling of different roles and responsibilities are done which assist
business associates to carry out business targets in effective manner. However, Haggies
adventure should follow certain plan of action so that quality food can be served. Through this
workers will get clear idea of work which will them to accomplish goals on time.
Implement: Haggies adventure should utilize the plan effectively in the working
environment so that productive results can be achieved . Firm should work according to the
assigned plan so that error can be eliminated from the business and can bit it's competitors in the
cut throat competitive world. .
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Evaluate: By evaluating Haggies adventure performance of the employees it will help in
future improvements as well as in the initial stage and best outcomes can be seen by utilizing
the resources properly. .
Feedback: Haggies adventure provide facilities to the customers to give their feedbacks
regarding firms services . Organization follow up feedbacks so that corrective steps can be
taken to achieve desired goals.
P5. Legislation required for travel and tourism industry
Every organisation working in UK has some laws and legislations which they are require
to follow including Haggies adventure. This provides a regulatory framework to the
company within which they need to perform.
 Tourism act 2011: The tourism and act no28 of 2011 came into existence for
managing, developing and regulating the business activities or operations in entire
world wherever haggies is working. It help them working legally around the world,
this act is also made to protect the interest of travellers as well as it focuses on their
safety. It is mandatory for every company to follow these acts while performing
their activities. Breach of this will be considered as illegal in the eyes of
government. These frameworks are made to protect customers from any
exploitation and accomplishment of these laws will attract more customers to the
company. This in return increases the sales and profitability of the company.
 Food safety act 1990: This is the law made for the safety of food, it provides a
food legislation which says that eatables & beverages provided to the customers
should be of good quality. It is the Haggie’s duty to arrange food for their travellers
in entire tour in which it is compulsory for organisation to obey the law or
legislation and fulfil the requirement is the best possible way. There should be no
compromise with the heath of customers otherwise company’s brand image will get
ruined and sales get decline.
P6. Impact of employment and contract law on business decision making
Employment law and contract law both play a very important role in business decision
makings. Haggies cannot take any decision which is out of these laws otherwise it will be
considered as the breach of law. Employment laws say that employees have to be paid full
remuneration and there should be no discrimination related to the age, sex, colour and
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religion. So, it is important for company to pay equal salary to their staff or they can pay
on the basis of their performance. On the other hand there is a contract law which says that
travellers and tour operators need to sign an agreement in which every norms of the
company is written down, and customers are require to read it first. This law is made to
protect the travellers and operators from any loss mad by the opposite parties, both the
parties can sue in case of breach of law. These acts impact the decision making of the
company because they are require to operate their functions legally and in ethical manner.
There is impact of employment laws and contract laws on the decision making of the
business. When employees are hired in Haggies, they have to follow employment and
contract laws for maintaining a peaceful environment at workplace. Also, employment law
is based upon different rules and regulation that have to be followed by companies while
hiring new employees. A contract law consists of several plans or deals that take place in
business.
Organization has taken decision regarding business expansion in the market so firm is
affected by various laws and legislation in the market both in positive and negative way.
Here, business needs to carry out all the legal norms and policies so that they can operate
business smoothly. All the human rights needs to be followed so that decision of expansion
does not hamper.
P7. Different type of financial statements
Income statement: It is the part of financial statement which Haggies uses for
periodically for accessing the company’s financial performance. It focuses on company’s
expenses, revenue, gains and losses. Haggies make it for their detailed sales and to find out its
net income as well as earning per share. For example:
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Balance sheet: It is also a statement which is a part of financial statement, Haggies
prepare it to find out its cash inflow and out flow of the company. It also help organisation to
find out its financial position in the market.
Statement of change in equity: This statement is prepared by the Haggies for analysing any
change in equity occurred during the period. Some of the equity which company consider are
purchase, profits, losses and dividends (Jenkins, 2019).
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P8. Importance and value of budget for controlling business performance
Business performance can be controlled by the budget because n effective budget help the
organisation to run their activities without any problem. Some of the importance of budget
in business performance is-:
 It help the Haaggies adventure to run their activities properly without any break and
also provide a growth to the organisation.
 Proper budget also help the company to segregate different department with separate
budgets so that company does not face financial problems in future (Conyette,
2015). It also help in growing in the market and to compete with the competitors.
 Budget helps Haaggies adventure to make proper plan in the market so that desired
goals can be achieved .
 Budget guide company in making effective plan for growth and development in the
competitive world. Effective budgets encourage business to flourish in the market.
CONCLUSION
From the above report it has been concluded that tour and travel industry has its own
important in the world. Tourism consist different set of activities like travelling, staying and
other fun activities. Hospitality is also the part of travel and tourism industry, they both work for
the same purpose and that is to provide the required services to the travellers. This industry has
been divided into four parts i.e. lodging operation in which comes services related to motels,
hotels, resorts, conference centre, B&B, casino etc. Other is transportation service which
includes services related to bus, taxi, bikes, railways, air planes and food & beverages. It is the
four largest sectors for a country to receive their revenues and they have their own laws and
legislations made which organisations need to follow. Apart from this, concept of performance
management has also been understood as well as it has been analysed that advanced budget
planning is good for proper performance of the business activities.
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