Travel and Tourism Business Toolkit

This document discusses the importance of revenue management in the travel and tourism sector, the HR life cycle in the industry, and the legislation that organizations in the industry need to follow. It also provides insights into the specific job role of a marketing manager in the travel and tourism industry.

Travel and tourism
business toolkit

Introduction:
Travel and tourism is important part of the hospitality industry and contributes in their
profits margin sectors. There are huge opportunities for the organisation to expand their
business at the international market place. travel industry is very attractive and profitable
industry for the various organisation present in worldwide location. under this report, the
Thomas cook working the under this travel and tourism industry and having the headquarter in
the united kingdom. Further there will be discussion on the revenue management
plan ,strategies to make effective budgets and financial statement and discussion how to manage
the HR life cycle in the organisation along with the legislation laws.
Lo1 :
Examine the justification and principle of the income administration for the Tourism Sector
Revenue management : It indicates to the analytic here the organisation are able to
predict the behaviour of the customer in the market place and improves the product accessibility
and manage the price so that profits can be earned in the long run. In the context of the Thomas
cook the organisation with the assistance of the revenue administration, they are capable to
manage the resources in the better ways. (Vogel, , 2016. )
Rationale and principle of revenue management:
In the market place there is various principle of revenue management which are
significant for the growth of the travel and tourism sector:
Rational in the relation to the Thomas cook:
 With the help of revenue administration Thomas Cook are able to offer quality goods and
services to their potential guest or customers in the hospitality industry as well as
according to target audiences buying power.
 In the relation to the travel and tourism, it is essential for respective company manager to
conduct proper management in hotel as that will help in generating more revenue, profit
and growth successfully.
 Here the Thomas Cook are able to reduce cost managing different function at the
management level and having traditional price format .
Principles :
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 Marketplace segmentation: here the whole market is divided into two different
segment such as qualified as well as non –qualified , here this segment, the
customer behaviour and attribution helps to form the respective segment which
helps the organisation to achieve their revenue within the set time period. The
market segments of the respective company are all age group people who belong
to upper middle as well as upper class income group. This is so because the
services provided by respective company are quality based due to which it is
expensive.
 Method of booking and historical demand: in the travel industry, the organisation
predict the demand with the help of historical data and pattern of the booking in
the company. So as per this principle, it is duty of the Thomas cook to form the
better strategies which will increase the number of the customer which will lead
to more profits for the organisation. In respect of respective company they need to
follow both online as well as offline methods of the booking, this is totally based
on the customer's preference. In addition to this respective company may also
provide information about discounts or offers to their old customers through e
mail and messages. This will help them in retaining customers for the life time
successfully.
 Overbooking: here the company take more booking in the market then its original
capacity, which increase their customer along with the revenue for the period. If
the customer cancel the facilities then it can affects the laws of income
administration. In respect of this respective company conduct market research in
order to regular basis so that they can estimate the chance of overbooking as this
will help them in arranging services as well as facilities accordingly.
Revenue management:
In the travel and tourism industry, there are various kinds of tools and technique which provide
the way for the organisation to generate the more profits in the market and increase the market
share of the company. In the context of the Thomas cook, few of the revenue management tools
are stated as below:
Capacity utilisation: As per this tool, the organisation are needs to conduct the effective
booking methods according to their capacity to have full use of resource. With the reference of
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the Thomas cook , they needs to focus on having their full booking which will helps in earning
or gaining more income for the establishment in the market place.
Discount allocation : with the use of this tool , the organisation are able to attract more
customer by offering them the effective discounts on various services and this will also
increase the number of customer towards the organisation. this also helps the company to retain
the existing number of customer and have good number of services which are offered by the
organisation in the market places. (Becker, 2016. )
Explain how the particular division of the travel and tourism sector apply income administration
tools to have more returns
In the reference of the tourism sector, the company have different revenue management
and pricing strategies which helps in achieving the organisation objectives in the effective
manners and generate more profits for the Thomas cook in the targeted market places.
Affects of various pricing strategies on the revenue management plan:
Differentiation pricing refers to the strategy where the organisation fixes the various prices in
the market place which are based on various factors such as customer behaviour, their
purchasing capacities, demand and supply in the market and condition of the country . the
impact of these pricing strategies can be positive and negative in the targeted segment , on the
positive side it enables in growing the profits of the establishment, expand their business
activities and reduce the production cost whereas the negative impact is that organisation brand
values gets damage in the targeted marketplaces.
Application of revenue management process:
 Forecasting: With the references of the Thomas cook, the organisation are able to
forecast the revenue generation from the various activities which helps them to have
effective profits margin in the market places. In addition to this by forecasting method
respective hotel also able to determine future demand of hotel according to which they
can arrange facilities and resources in effective manner. This will improve effectiveness
of the hotel as well as it also enhance satisfaction level of employees.
 Control: Here the management of Thomas Cook can control their activities in relation
with the revenue management such as cost related to the booking, various another
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facilities and seat arrangement. Along with this, it is also essential for respective
company management to conduct effective control of activities so that all the business
operations as well as functions will conduct in effective manner. In addition to this, for
this it is also essential to conduct or control business operations according to the budget
because it help in ensuring the functions are conducted properly.
Principle of the various revenue management :
 Demand and supply forecast methods: here with this principle the organisation are
able to calculate their demand and supply in the market place which helps in calculating
the revenue which can be generated in the coming years.
 Market segmentation: according to this situation, the organisation are capable to
identify the targeted the market and finds out the potential customer so that they can
arrange the facilities and create more profits for the company in the market.
Lo2:
Review the different phase of the HR life cycle apply the specific travel and tourism job and
important for retaining and developing talents.
The human resource management cycle includes various stages which help in selecting the
most qualified employees for the jobs which are available in the travel and tourism industry.
Here the job role of marketing manager is considered which are essential in the organisation to
achieve the goals. With the references of the Thomas cook , the different kind of stages which
are involved in the HR life in the field of the marketing manager in the company are discussed
as below: (Colangelo,and Zeno-Zencovich, 2016). The job role of marketing manager is that they
need to take decision as well as conduct planning in order to promote business, products and
services effectively in the marketplace. Through their function they company able to increase
their customer's base, market presence, market shares and many more. The implication of human
resource lifecycle in order to hire marketing manager at Thomas cook is given below:-
Appeal: Here the Thomas cook organisation make different strategic to attach more applicants
towards the organisation job vacancy for the post of the marketing manager ,this helps the
organisation to have more effective employees which helps in achieving the desire level of
outcomes in the proper manner. In this phase the HR manager provide notifications to people by
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using marketing channels like social media, email and others so that people are aware with the
application regarding vacant positions with the company.
Recruitment : for the role of marketing manager , the organization needs to conduct different
hiring and selection process which helps the company to attach more worker in the team , they
can conduct this process by having interview in the form of face to face interrelation where the
manager can examine the analytic skills and capabilities of the applicant and then select the
best candidates. In Thomas Cook, the HR manager can considered different requirement and
selection activities and methods to hire skilled candidates for particular job role. In context of it,
they can follow interview and aptitude test etc. because it will assist in offering a knowledgeable
and skilled applicant.
On –boarding: under this method, the manager of the Thomas cook make the selected applicant
to understand the description of the job role, what are company rules and regulation and different
policies which are followed in the organisation, what will the job of the employee and needs to
have proper documentation. In respective venture, the HR manager can provide orientation
program to newly hired candidates for particular job role so that are familiar and aware withe
rules, regulations and policies, organisational culture and way of working so that they can
execute the duties of specific job role in effective manner.
Development: here the manager of the organisation make various training and learning program
for the employee where they can learn the skills which are needed into the marketing manager.
This development programs will help the worker to perform better in the task and help the
organisation to achieve the task. The HR manager of Thomas cook can organise online and
offline training and learning sessions of programmes so that employees can make development
in their skills and knowledge to perform the duties and accountabilities of marketing manager job
role.
Retention: here the Thomas cook company tries to retained the existing employee in the
organisation by offering them rewards from time to time, appreciating their work and also give
different kinds of benefits which helps to stay longer with the company. This will be beneficial
for the company because old or existing employees already know the work which save resource,
time and funds of providing training.
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Separation: under this stage, the employee of the organisation starts to leave the them which
affects the performance of the company in the market place and which also damage the brand
image of the organisation in the this industry. (Vasant, 2016)
The above stages are important in the HR life cycle, this stages helps the company to
have productivity employees at the work place which helps the company to retain the good staff
as well hire the potential employees which will helps in enhancing their profits in the market
places.
Develop the performance management plan for the travel and tourism job role and apply
technique to solve the negative behaviour and overcome issues of the staff retention.
The plan which are designed for the measuring and managing the performance of the
employees’ of the organisation so that goals and objective can be achieved in the market place
within the set time period. in the relation with the Thomas cook, they make the plan for the
position of the marketing manger so that effective staff is selected by the organisation which
also increase the revenue of the company in the targeted segments.
Job role: Head Marketing Manager
Function: marketing section .
Organization: Thomas cook
Objective Success criterion Additional maintain
requirement
Outcomes
Solving the negative
behaviour of the
employees:
To solve this problem
in the management
level of the
organisation, the
manager can conduct
the various session
which will includes
the motivation class,
having meeting
section which will
Here the manager and
leader can offer the
additional help to the
employees to conduct
the market survey
which will helps in
providing the
innovative methods to
perform the task in the
most profitable
The Thomas cook
organisation are able
to have productivity
staff which helps in
achieving the task in
the proper manner
which lead to
enhancement of the
market share in the
various place and
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helps in resolving
such issues at the
work place.
manners. increase the profits.
Problem related to
staff retention:
To overcome such
problems the
organisation can
adopt different
strategies such as
rewards for better
inputs, giving
recognise for good
work , this way the
employee will feel
inspired to perform
better in the work
environment
Here the manager can
provide different
strategies which will
help in achieving the
desire performance by
making better
decision in the
organisation.
The organisation are
able to reduce the
employees turnover
ratio, which also
create brand value
to the company
name in the market .
In the context of the Thomas cook , effective performance management plan helps them to
enhance their inputs and outcomes in the market .
Lo 3:
Explore legislation that organisation in the travel and tourism industry .
The Thomas cook company perform at the various location which have different legal laws
according to their area of operations in the market places. There are different laws which are
followed in the travel and tourism industry to perform their task in proper manners.
 Development of Tourism Act 1969 – The main aim of creating this legislation is to
develop coordination among all the companies operating in tourism sector and then
develop a single decision for operating. This will also develop for promoting the United
Kingdom tourism.
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 Air passenger duty (APD) 1996 – It is a tax imposed by the United Kingdom
government on passengers who are flying out of UK. In year 1996 the air passenger duty
was deducted on the economy flights by diminishing barriers in order to enhance inbound
tourism but in 2006 the air passenger duty get increase. It is essential for companies to
follow this legislation while providing air facilities to the traveller in their tour package.
 Package travel, package holiday and package tour regulations 1992 – From 1992 all
the tour operating companies are offer holiday or travel packages under the respective
legislation. This legislation is developed by government in order to ensure that no illegal
practices will conduct by tour operators.
These are some of the main legislations of the travel and tourism industry which are essential to
followed by the Thomas Cook as that will help them in operating in United Kingdom in effective
and successful manner.
P6: examine how company employment and contract law has potential impact on the business
decision making in the this industry.
In the concern of the travel and tourism industry, the organisation conduct its activities
under different laws such as companies law, employment and various another laws . some of
important laws which are applied in the Thomas cook are as stated as below:
Employment Law – The respective act is developed by United Kingdom government in 1996
which cover wide variety of topics in order to protect rights and power of employees as well as it
also provide guideline to the employers which help in conducting business operations smoothly.
This will include unfair dismissal, redundancy, family friend leave, minimum wage and many
more. The respective legislation will impact on the Thomas Cooks decision as their employer
able to develop proper rules and regulars according to government guidelines. This will help
them in satisfying employees as well as fulfilling legal aspects of conducting business at the
United Kingdom.
Contract law: here the protections are given to the seller and buyer at the market place. It helps
the organisation to operate in the proper legal laws where parties of the contract are having
equal rights in the market places. Protecting the rights of the contract member like organisation,
and its stakeholders. In Thomas Cook, with the help of this law, the firm always manage
favourable relationship among customers and clients and it can be implemented without any
issue. The impact of contract law on the Thomas Cook decision is that sometime there are some
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suppliers or vendors who offer profitable deals but respective company management not accept
due to the contact law guidelines. This show that how contract law impact on the respective hotel
business operations and decision making.
Lo4:
Examine the different kinds of the financial statement and reporting mechanism for the
organisation .
In the tourism industry, there are different financial statement which provide the reporting
mechanism of their activities which shows the profits and loss statement of the various task .
some of the financial statement which are used in the Thomas cook are as follows:
Income statement : with the help of this statement , the organisation are able to examine their
profits which are earned over the certain period of time . it shows the total sales done in the
period and reducing all the expense incurred in that period. By adopting this method Thomas
Cook able to determine their profit accordingly which they can develop strategies as well as plan
so that they grow their business successfully.
Balance sheet : it is statement which shows the assets and liabilities of the organisation in the
period where organisation have performed its task and activities . it shows the financial position
of the company at the market and provide what organisation have earned as on the date in the
market places. (Cheng, and Lok,., 2015). By developing a balance sheet respective hotel able to
determine their assets as well as liabilities according to which they can develop strategies for
growth and it also help in determining any resource which is required.
Statement of cash flow: this provide the information about the cash flow in the organisation in
the certain period of time and their activities are divided among the operational, financial and
investing field. Through adopting or preparing statement of cash flow Thomas Cook able to
determine total amount of funds and then divide it into the different department in effective
manner so that they perform accordingly.
These financial statement needs to be prepared by the organisation to evaluate the
performance of the company over the period to time to see what profits is earned by the
company.
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P8: examine the importance and value of budgets for the controlling business performance
Budget is considered as financial plan which is generally develop on the basis of one
year. This may also include several aspects such as sales volumes, revenue, costs, resource
quantities, assets, expenses as well as cash flow. There are several importance and value of
budget for controlling business performance because every department of a Thomas Cooks will
conduct their work according to allotted budget. In addition to this, it is also required for
conducting planning for future course of action in order to conduct whole activities at respective
hotel. In addition to this it will also guide for the action at the respective hotel which leads to
controlling of business performance in effective manner. The organisation have various
important of having proper balance budget in management which helps in achieving the goals in
time period. some of imperative are stated as below:
Helps in reducing the expenses: with the effective budget the organisation are able to
minimising its cost and expense which affects the performance of the organisation.
Predicting the future condition: the budget helps to understand the future work environment
and make the effective strategies which helps the organisation to manage its resources in better
ways. (Agag. and El-Masry, ., 2016)
Role of budget -
 By developing budget Thomas Cook able to forecast income as well as expenditure
according to which they develop strategies.
 It is also role of budget that it help respective company management to develop or take
proper decision according to allotted funds.
 Budget also perform role of monitoring the business performance according to which
decision can be develop.
Importance of budget -
 It is important for the respective hotel as that will aid their management to control their
expenses which increase their profit ratio.
 For respective hotel budget is also essential because that will help them in keeping tack
for the financial goal according to which strategies can be develop.
 Developing budget also help respective hotel to be prepare for the emergencies situation
such as decrease in economy, losses, over booking and many more.
Benefits of budget -
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 The benefit of budget which will be gain by Thomas Cook is that it will help in
organizing business spending.
 This will also help respective company management to develop a cushion for the
unexpected expenses for the business.
 Development of budget also aid in determining the exact expenses as well as profit
according to which strategies can be develop.
Some of calculation of ratio :
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From the above calculation it can said that Thomas cook have good profitability in this industry
in the long run and will able to expand it at international market place.
Conclusion:
According to the above discussion, it can stated that the tourism industry is having good growth
in the market which helps the organisation to earn the desire profits by managing its various
function in the proper manners. here the company have proper control over the revenue
management which leads to better use of resources and follow the different legal laws which
offer the company to execute its task in the better manner and focus on enhancing their profits
margin in the market places.
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(Vogel, , 2016. )
(Becker, 2016. )
(Colangelo,and Zeno-Zencovich, 2016).
(Vasant, 2016)
(Chen, and Lee,, 2017)
(Cheng, and Lok,., 2015)
(Agag. and El-Masry, ., 2016)
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