The Travel and Tourism Business Toolkit

This toolkit provides information on key principles of revenue management, managing the HR life cycle, potential impact of legal and ethical considerations, and managing budgets in the travel and tourism industry. It focuses on the company TUI and includes insights and strategies for effective business operations.

The Travel and
Tourism Business
Toolkit

Contents
INTRODUCTION...............................................................................................................................3
PART 1.................................................................................................................................................3
Key principles of revenue management for industry.........................................................................3
PART 2.................................................................................................................................................3
Managing Human Resources (HR) life cycle of HR strategy............................................................3
PART 3.................................................................................................................................................4
Potential impact of legal and ethical considerations on business.......................................................4
PART 4.................................................................................................................................................6
Managing budgets and maintaining statistical and financial records.................................................6
CONCLUSION....................................................................................................................................9
REFERENCES..................................................................................................................................10

INTRODUCTION
Tourism industry, according to this globalised world contains a variety of actions like
transportation, accommodation, food and beverages etc., thus, with the help of which,
companies operating their businesses under this provides effective services and facilities.
Therefore, companies who are doing business under travel and tourism sector tries to provide
excellent services to its customers so that they can enjoy their business as well as leisure time
Tsui and et. Al., (2018). The report is based on the company names TUI, established in the
year 1923 and since them it is providing excellent services to its customers. This report will
include various factors like the principles of revenue management and its importance within
the company. Moreover, human resource life cycles will also be highlighted in this in context
with HR strategy. Along with this, some of the legal consideration that are required to run a
business is mentioned in this report.
PART 1
Key principles of revenue management for industry
Revenue Management
Revenue Management, is said to be process through which company predict the
demands of customers so that they can optimize the inventory and moreover, makes changes
in the price availability so as to enhance its revenue growth. For example: in context with
TUI, the purpose of the company is not to sell a room of a hotel at lower prices but to sell it at
higher price tomorrow but is company doesn’t have a chance to get the expected demands
than it can be sold at lower price.
Yield Management
While working in sector like hospitality or travel and tourism, yield management
plays a crucial role as it is a kind of a pricing strategy which is being utilised in order to
generate more and more money. For example: defining an appropriate price by TUI, in terms
of the services and facilities they are providing company can attract a large number of
customers.
Rationale of Revenue Management
In the hotel industry revenue management, has a significant role as allows the owner
of the company to det the prices by anticipating the demands and availability of the resources
considering this, however, company will be able to achieve all its determined financial

results. Therefore, it can be said that, a revenue management includes the use of performance
data and analytics that moreover, assist the company in accurately predicting the demand of
customers.
Helps in Lowering Cost: Revenue management, can leads to innovation in the
services or in the regular work a company is doing. In the industry of travel and tourism
booking of tickets or the services depends upon various factors like, which category of age
are travelling, economic conditions, and many more. So, TUI can deal with other factors and
managing the other resources can provide the best deals to its customers.
Enhancing Branding: As, revenue management provides with a guidance n terms of pricing
strategies, how to optimise the available resources etc., it will also assist in improving the
image of the brand Reid, Johnston and Patiar, (2017). For example: providing effective
services by TUI even after at low price, this will grab the attention of large number of
customers and eventually helps in enhancing its brand.
Attracting Ideal Guest: In the sector of travel and tourism, guests are their valuable
assets so, it is important that to attract a large number of guests a company has a better
revenue management. As it will aid the company in utilising the resources in a right manner
without compromising the quality of goods and services.
Principles of Revenue Management
Historical Demand and Booking Patterns: with the comping of technologies,
company can now go through the past dates and analyse the demands and wants of customers
and can provide services accordingly Tsui and et. Al., (2018). For example: Customers
travelling to a certain place during Christmas holidays, will enable company in knowing that
they are travelling to spend their leisure time with their friends and family and moreover, they
can provide services and facilities accordingly.
Information system: Implementation of information system, provides a company
with an opportunity to have a look on the choices and preferences of services customers
wants. Thus, as per the requirements they can hire skilled employees who knows about
managing technical activities and help the firm in connecting with its valuable customers.
Market Segmentation: One of the most prominent tools for classifying the
customers or business operations according to specific criteria. For example: TUI, can

categorised its regular customers and however, can provide benefits or discount coupons for
their loyalty.
Revenue Management Tools:
This is a toll that helps a revenue manager in analysing the factors which the help of
which benefits can be attained in a specific period of time and to understand this in a better
manner these are explained below for better understanding.
Property Management System (PMS): It is one of the key tools used by the hotel
industry in order to provide its guest with the best experience. Company uses different and
latest technologies o that they can have a better connection with its customers.
Channel Manager: They are the one who manages all the inventory through different
reservation channels using a single monitoring point this means, with the help of a single
system and in quick time, manager can actually go through different reservation panels and
evaluate the outcomes DiVincenzo and Malafi, (2017).
Impact of Differentiated Pricing Strategies:
Most probability the pricing strategy depends upon the different factors whether
internal or external such as, geographical, economic, political and many more. Thus, it is
important that company implement pricing strategies considering the market situations
available. As a result, it will not only help the company in getting maximum benefits but also
assist in enhancing the market share and value.
Application of Revenue Management:
Proper application of revenue management, in a company helps the firm in analysing
demand and supply and based on this make prediction for the activity they want to do in
future. Moreover, it will also assist the organisation in segmenting the market for providing
effective services and facilities.
PART 2
Managing Human Resources (HR) life cycle of HR strategy
In business organization, managing human resource is important as it helpful in
improving the entire working activities of company. This can be beneficial in improving the
overall performance of company and its employees as well Mariani and et. Al., (2018). In this
regard, it is crucial for TUI to effectively evaluate the human resource life cycle that may

support in attaining all the set goals and objectives in an effective manner. These are as
follows:
Attraction: This is one of the important stages in which company focus on inviting
new and talented employees who are able to execute job role i.e. increasing sales within the
company. In context of TUI, manager of company focusses in recruiting eligible workers for
specified role at workplace. This can be beneficial in improving the possibilities of attaining
all the predetermined goals and objectives in an effective manner.
Induction: Under this stage, both manager and employees looking for enhancing their
skills and knowledge on the basis of particular sales department. For this, manager of TUI
provide proper induction programs to their new employees in order to make them enough
aware about their roles and responsibilities. Along with this, company also tries to keep them
able to attain their targets in stipulated time frame.
Career planning and development: Once workers are recruited company focus in providing
them opportunities to grow within the company. As, TUI also provide performance appraisal
as per employee’s performance that support in improving employee’s efficiency level and
make them loyal towards the company Čavlek, Ladkin and Willis, (2017). In addition of this,
HR team also determine their potential and interests at working area that boost their
productivity level to attain their targets in specified allotted time duration.
Retention: This stage of HR life cycle take lots of time as company pay more on each
an every employees to develop thein retention within the business. This is effective and
beneficial stage in which manager able to retain their skilled and talents workers and at the
same time also provide them a good working environment wherein they give their best efforts
for attaining their set goals and activities. One of the main advantages of this stage is that it
reduces employee turnover and at the same time also established its competitive image at
market place. By providing motivation and rewards to employees can also effective in
making workforce more productive and efficient in enhancing the overall sales of the
company at market place.
Separation: This stage is focus on understanding about why employees leave as it is a key
part of keeping as well as retaining best people within the company for increasing sales in
market Ghanem and Elgammal, (2017). As having a better conversation with workers, it also
assists as well as promoting a positive and healthy atmosphere. This will contribute in
preventing remaining all the staff members from any kind of worrying within the company

and about their future as well. It may support in keeping them competitive and positive that
help in developing overall performance of the company at market place.
PART 3
Potential impact of legal and ethical considerations on business
Legislation is understood as a collection of established rules by the United Kingdom
government and other law enforcement agencies to handle the various aspects and
involvement of various groups of people. In addition to this, Laws and regulations is
characterized as a statute that has already been made by the parliament or any other security
agencies or bodies for attempting to make it. Regulation herein implies the standard of
accuracy or accomplishment and the direction in which work activities and elements are
conducted out over the defined framework of the attainment of the performance. These are all
governed by the rules and regulatory requirements agreed by the UK community to make
effectiveness and priorities. They are regarding legal constraints and are implemented to
growth and expansion by TUI because this aims to identify a manner forward towards the
longer term. In context of this, it is important for company to strictly follow all the rules and
regulation that help them in maintaining their positive performance at market place and at the
same rime customers are also influenced towards its services. One of the main advantages of
all the legislation is that all are connected with each-others and also applied within the
company to make entire activities a process more effective and smoother as well. In this
regard, there are some contract and employment law that impact over the decision-making
activities in TUI. As contract laws is refers to the agreement between employees and
employer which is highly based on overall relation with employment Jarratt and et. Al.,
(2019). As it is important for company to maintain the relation with both parties that help in
reducing the possibilities of arising issues and conflicts in front of time period. In this some
rules and regulations that are follows by company are as follows:
Minimum Wages Act, 1998: This act is also effective and important for TUI in
which company have to recruit skilled and talented employees and also pay them
accordingly. The main focus of this type of act is to protect employees’ rights. This is the
reason that company is responsible to follow the same act within their activities. As it help in
inviting as well as influencing people who are availing services and also performing the job
activities. This will contributes in improving brand image and make it more competitive at
market place.

Consumers Protection Act 1987: This type of legislation or act is also playing a crucial role
in TUI because it focusses on customers. Mainly, it formed by UK government that help in
protecting consumer rights Victorovna and Ivanovich, (2019). In this act, TUI is responsible
for providing high quality of services to its customers as per their requirements. This can be
beneficial in improving the customers base of the company and at the same time also
established organizational performance more competitive. With the help of this act, firm
needs to provide proper information about services to its customers so that they are aware
about its offerings. Along with this, it is also beneficial at the time of offerings products at
high price. Therefore, this act allows customers to check product price before consumers.
This will contribute in enhancing the overall performance of TUI is more competitive and
also make customers also loyal towards its services that they offer in the market place.
Trade Description Act, 1968: This type of act is also used by company as it focusses on
managing as well as providing all the necessary information that is based on the customers
requirements and demand. In addition of this, it also beneficial for TUI in reducing the
possibilities of misuse of good and services. Mainly it also provides authentic sites and area
wherein company easily run their business Wiltshier, Griffiths and Clarke, (2019). By
following this type of act, TUI can easily maintain their positive brand image and attain
competitive advantage from its rivals.
PART 4
Managing budgets and maintaining statistical and financial records
It is important for business organization to effectively manage entire budgets in order
to improve their performance level. Being a financial manager of TUI, it is crucial to
implement all the necessary activities like proper planning, budgeting and forecasting. All
these are support in attaining all the targets related with the financial aspects of TUI. In this
regard, there are some effective ways that can be used by company in order to manage all the
financial records are as follows:
Balance sheet: It is also referring to the significant statement of financial activities of
company that show the summary of financial balance that carry by company and any kind of
individuals. Mainly, it prepared at the end of the financial year that show the actual
performance of the business. In addition of this, it is also includes two sides in which left side
show assets and other hand right show the liabilities of company.

Statement of Cash Flows: This type of statement includes all the inflows and out flows of
company in specified time frame. In case out flow is high as compare to in flows then
company is responsible to pay to outsiders.
Income statement: It is considered as an important financial statement that shows the overall
performance of company in financial context. Mainly, it includes all the sales and expenses
that support in calculate the net profit or loss as well. It is based on the specified time
duration that focus on all the importance financial statements that represent the current
performance of the company.
Vale of Budget in TUI: In business organization budget play a significant role because it is
referring to the estimation of all the expenses and revenue on the basis of specific duration of
time. Thus, it is important for TUI because it help in fulfilling all the necessary activities that
present within the company Morrison, (2018). With the help of budget, company can easily
manage their overall performance and at the same time also attain their predetermined targets.
Mainly, budget help in determining all the information related to money along with all kind
of inflows and outflows. This will directly contributes in eliminating all the errors and
complexities within the financial performance of the company at market place.
Calculations on the basis of Different Ratios
The different types of ratios which are calculated by TUI with the aim of analysing
their financial performance at market place are as follows:
Net profit ratio – Net Profit/Net sales*100
Profitability ratio 2017
Net profit 1403
Net sales 12226
0.11
Gross profit ratio = Gross profit/Net sales*100
Profitability ratio 2017
Gross profit 1774
Net sales 12226

0.15
Return on equity = Net income/Shareholders equity
Profitability ratio 2017
Net income 1403
Shareholder's equity 5774
0.24
Current ratio = Current assets/current liabilities
Liquidity ratio 2017
Current assets 4518
Current liabilities 5468
0.82
Quick ratio = Quick assets/Current liabilities
Liquidity ratio 2017
Quick assets 3752
Quick liabilities 5468
0.68
Asset turn over = Cost of goods sold/Total assets
Efficiency ratio 2017
Cost of goods sold 17326
Total assets 16678
1.04
Inventory turn-over = Net sales/Inventory
Efficiency ratio 2017

Net sales 12226
Inventory 766
15.96
Debt to equity ratio = Total long-term debts/Shareholders fund
Financial ratio 2017
Total equities 5974
Total liabilities 16678
0.36
Earnings per share = Net profit after tax & preference dividend/No of equity shares
Investing ratio 2017
Net profit after tax & preference dividend 1403
No of equity shares 5974
0.23
As per evaluating the ratio, it can be analysed that each and every strategy are totally
different as it is based in the nature of terms and at the same time also play their role for
meeting all the set requirements. In relation of strategic target of company, overall operating
cost of company in 2017 was 7915 million and along with this revenue is also determined as
1226 million. This show the actual performance of the company at market place. In addition
of this, its profit after tax was 1447 which is more effective as compare to previous year. As it
is evaluated that implementation of strategy is appropriate and also working that directly
contributes in attaining all the set goals and targets in stipulated time frame.
CONCLUSION
From the preceding analysed report, it can be summarised that travel and tourism is
one of the growing and developing industry as it also put positive impact over the
enhancement of economic condition. In this context, certain tools and principles are used by

company with the aim of generating larger profitability from its competitors at market place.
This is the reason that company focus on effectively implementing the strategies that support
in increasing its sales and revenue as well. In addition of this, human resource strategy also
plays a significant role in business organization in hiring as well as recruiting skilled and
talents workers so that they easily perform their duties in accomplishing their targets. Apart
from this, various rules and regulations and standards are also implemented by the company
that help them in running their activities in successful manner. These are directly contributing
in establishing their competitive and successful brand image at market place.

REFERENCES
Books and journals
Morrison, A.M., 2018. Marketing and managing tourism destinations. Routledge.
Wiltshier, P., Griffiths, M. and Clarke, A., 2019. 14 Toolkit: Managing Relationship
Marketing with Sacred and Secular Consumers. Managing Religious Tourism, p.167.
Victorovna, S.S. and Ivanovich, S.V., 2019. Way to assess the development of municipal
tourism infrastructure. Journal of Applied Engineering Science, 17(1), pp.87-92.
Jarratt, D. and et. Al., 2019. Developing a sense of place toolkit: Identifying destination
uniqueness. Tourism and Hospitality Research, 19(4), pp.408-421.
BRASS Education Committee, 2019. Best of the Best Business Reference Web Resources
2019. Reference & User Services Quarterly, 59(1), pp.66-68.
Čavlek, N., Ladkin, A. and Willis, C., 2017. All at sea: sustaining livelihoods through
maritime tourism in Croatia. African Journal for Physical Activity and Health Sciences
(AJPHES), 23(Supplement 1), pp.66-88.
Mariani, M. and et. Al., 2018. Business intelligence and big data in hospitality and tourism: a
systematic literature review. International Journal of Contemporary Hospitality Management.
DiVincenzo, S. and Malafi, E., 2017. Supporting Local Businesses and Entrepreneurs in the
Digital Age: The Public Librarian's Toolkit. ABC-CLIO.
Reid, S., Johnston, N. and Patiar, A., 2017. Coastal resorts setting the pace: An evaluation of
sustainable hotel practices. Journal of hospitality and tourism management, 33, pp.11-22.
Tsui, W.H.K. and et. Al., 2018. New Zealand business tourism: exploring the impact of
economic policy uncertainties. Tourism Economics, 24(4), pp.386-417.
Ghanem, M. and Elgammal, I., 2017. Communicating sustainability through a destination’s
website: a checklist to inform, motivate, and engage stakeholders. Journal of Travel &
Tourism Marketing, 34(6), pp.793-805.
Kyunguti, E.M., Juma, D. and Gathondu, B.G., 2019. Influence of distribution strategy on the
international tourism demand in Kenya. The Strategic Journal of Business & Change
Management, 6(1), pp.75-90.