The Travel and Tourism Business Toolkit

The Travel and Tourism
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1. Discuss the rationale and principles of revenue management for the travel and tourism
industry........................................................................................................................................3
P2 Application of revenue management tools on specific sector of travel and tourism sector for
maximising profit.........................................................................................................................4
LO 2.................................................................................................................................................5
P3 HR life cycle and their importance for retaining and developing talent................................5
P4 Performance management plan..............................................................................................5
LO3..................................................................................................................................................8
P5 Specific legislation that organisations in the travel and tourism industry have to adhere to. 8
P6 Impact of company, employment and contract law on business decision-making................9
LO4................................................................................................................................................10
P7 Different types of financial statements and reporting mechanism for organisation within the
travel and tourism industry........................................................................................................10
P8 Importance and value of budgets for controlling business performance and identifying
variances....................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Tourism industry is rapidly growing at global level. But due to Covid 19 there is adverse
impact on this sector. It is necessary for companies in tourism sector to maintain their financial
performance. This is because it enables in creating high brand image and value in market. The
revenue management helps in recording and maintaining of all financial data. Also, there are
diversified employees working in this sector. Hence, HR needs to recruit and train them in
effective way (Gretzel, 2018).
In this report it will be discussed about principle of revenue management. The various
revenue management tools along with HR cycle. Also, a performance management plan will be
developed and laws that company has to follow. Moreover, it will be described about contract
and employment law as well. TUI operate at global level and provide various services.
LO1
P1. Discuss the rationale and principles of revenue management for the travel and tourism
industry
In every sector revenue management plays vital role. It is related to selling of right
product to right customer. Also, it enables predicting customer demand so that accordingly
inventory can be utilised in efficient way and there is high growth. Basically, it is a long term
strategy as in this product can be sold at lower price even when there is high demand of it in the
market. However, there are certain principles of revenue management which are followed by
TUI in it. here, revenue is managed in such a way that demand is forecasted by gathering
relevant data from market. The data is either from past, present or future. Thus, on basis of that
right price of product is set and it is delivered in right time. however, demand forecast state
demand of services for a specific time period.
In addition, forecasting is useful for various department to set their goals and objectives.
they prepare budget as well. furthermore, sales and marketing team develop strategy for growth
of business. The rationale for revenue management is to set budget, future price, etc. it enables in
setting of rates low or high as per demand.

Besides that, market segmentation is component of revenue management. It is useful in
identifying needs of different customer on basis of segmentation. The principle of revenue
management is pricing and inventory. It is used to find out price of product available. in this
price of all inventory is maintained in it (Khan, and et.al., 2017).
P2 Application of revenue management tools on specific sector of travel and tourism sector for
maximising profit
The main purpose of revenue management is to increase profit. This is done by providing
right product to customer at right price. Alongside it aids in analysing demand of service in
market. For that there are different types of tools which is available and can be used by TUI in
order to increase revenue. they are as follows
Pricing- it is essential tool as it provide with various pricing strategies that can be used by TUI to
raise profit. In this price is determined on basis of demand of product, location, etc. so, in
tourism sector transportation adopt this tool. Hence, dynamic pricing is attained from this tool. It
assists in managing the traffic flow and also attract more passengers for journey when optimum
pricing system is maintained.
Inventory- it is also a vital tool as the overall inventory is controlled in it. usually, the tool helps
in using resources in optimal way and allocate capacity. In tourism sector there are various
services offered at discount rate. This is done to attract more customer. Therefore, transportation
sector of TUI uses this tool to maintain bus, car, airplane, etc. in this way organisation inventory
is properly managed (Lew, 2018).
Technology- TUI uses advance and various technology so that they can gain competitive
advantage. With help of technology it becomes easy to adopt many innovative ways of offering
services. this can be installed in transportation to reduce cost, generate more revenue, etc.
Marketing- this tool provide TUI with different marketing strategies of promoting their product
in the market. Promoting the product assist in increasing the brand image of the product .
Transportation sector of TUI adopt this revenue management tool in order to promote their
transport services to increase their market share. Application of this tool support transport sector
of tourism in maximising their profitability.
Channels :- Channels are the different tools of distribution through which product or services are
provided to customers. Transportation services which are provided to customer through online