The Travel and Tourism Business Toolkit - Sample Assignment

The Travel and Tourism
Business Toolkit

Table of Contents
INTRODUCTION ..........................................................................................................................1
LEARNING OUTCOME 1.............................................................................................................1
P1 Rationale and principles of revenue management for travel and tourism industry...............1
P2 Particular sector of the travel and tourism industry applies revenue management tools.......2
LEARNING OUTCOME 2.............................................................................................................3
P3 Different stages of the HR life cycle applied to a specific travel and tourism job role.........3
P4 Performance management plan for a specific travel and tourism job role............................4
LEARNING OUTCOMES 3...........................................................................................................5
P5 Legislation in travel and tourism organisation.......................................................................5
P6 Company employment and contract law to make decision in travel and tourism industry...6
LEARNING OUTCOMES 4...........................................................................................................6
P7 Type of financial statements for Tourism industry................................................................6
P8 Importance of budget to control business performances by identifying variances................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business toolkit refers to set of tools required through firm while launch new business at
market place. These are acts as the prerequisites for initiation of new firms and provide them
assistance to turn their ideas in to the actions. In this present time, travel and tourism is one of
most growing industry and provide the better travelling services to people in all over world. In
travel and tourism industry, toolkit helps in making day of guests every day (Beirman, Ritchi,
and Campiranon, 2014). This present report is based on the Thomas Cook Group Plc, and it is
British global travel organisation. This present report will provide the brief explanation about
rationale and principles of revenue management for travel and tourism sector. Various kinds of
financial statements and reporting mechanism will be discussed in this report.
LEARNING OUTCOME 1
P1 Rationale and principles of revenue management for travel and tourism industry
Revenue management refers to application of the disciplined analytics that predict
behaviour of consumers at micro- market levels as well as optimize availability of products and
cost in order to enhance growth revenue of business. In travel and tourism sector, revenue
management is a concept that permit manager to examine customer's demand and then match it
with the availability with set prices so that the hotel can can its better financial outcomes. In
context to present scenario, Thomas Cook needs to enhance their knowledge regarding revenue
management that will help in in handling work in a better manner. The hotel enhances their
profit because it enhances profitability as well as revenue through combining availability of
rooms to accommodate profitable mix of consumers.
The rationale behind revenue management is to increase positive revenue for an
organisation so that profit can be increased (Brealey and et. al., 2012). It can be said that on one
side all revenue management principles are better for business but on the other hand, it consume
manager's time that enhance of firm ins negative way. The main rationale of revenue
management us to generating the more revenue as well as enhance profit level. In the travel and
tourism industry, it is about selling similar product to right customers at tight time in context to
enhance revenue. The revenue management permit the owners of hotel in order to anticipate the
demand as well as optimise costing and availability in context to attaining the better financial
outcomes.
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There are some principles of revenue management and their significance in travel and
tourism sector mention below:
Pricing: In this principle, it is necessary for manager of Thomas Cook Group to set cost
of goods in such a manner that can recover all the expenses of business and help in generate high
profit level. The negative affect of this principle is fluctuation in interest and tax rate that might
not be match with set amount. The revenue management is mainly in changing costs or also
making the proper discounts. It is necessary that hotel should keep the cost of its products and
facilities reasonable so that visitors can be attracted towards it and through this profit level will
be enhanced.
Forecast: Predicting future demands that depends on past outcomes is better starting
point in order to develop effective strategy. Under this, changes in market situations, capacity
constraints, floating holidays, economic climate and some of the other external factors require
some more though around demand potential. Forecasting consists revenue prediction that is
expected through Thomas Cook. It can be done through examining past revenue records of
organisation. According to this, finance manager of Thomas Cook firm can forecast the future
revenue of business in a better manner. Its negative impact is that it does not give an accuracy as
to be prediction of future that can be exclude the changes in environment.
Customer: This principle aids manager of Thomas Cook Group to predict demand of
consumers in context to marination an availability of less stock for high growth venture. On the
other hand, demands and preferences of customers are changes with in less period of time. It
develop negative impact on planning of revenue manager (Foster, McCabe and Dewhurst, 2016).
The customers are major factor that influence on the profit level as well as revenue of business. It
is necessary that hotel should provide all the necessary facilities to customers on the basis of
their needs and demands in an effective manner.
Optimization: It is one of the most necessary principle of Revenue Management and it
states that Thomas Cook Groups needs to use available resources in better way in order to
generating the desired revenue for business. It is necessary that hotel should use the proper
utilisation of the available resources in order to conducting its business activities as well as
operations in an effective or better way.
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