Travel and Tourism Business Toolkit

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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