The Travel and Tourism Business Toolkit

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