The Travel and Tourism Business Toolkit

This report discusses the rationale and principles of revenue management in the travel and tourism industry. It investigates how a specific sector applies revenue management tools to generate and maximize profit. It also analyzes the impact of differentiated pricing strategies. Additionally, it reviews the different stages of the HR life cycle in a specific travel and tourism job role.

The Travel and
Tourism Business
Toolkit

Contents
INTRODUCTION......................................................................................................................................3
LO 1............................................................................................................................................................3
P1 Discuss the rationale and principles of revenue management for the travel and tourism
industry...................................................................................................................................................3
P2 Investigate how a specific sector of the travel and tourism industry applies revenue
management tools to generate and maximize profit........................................................................3
M1 Analyze the impact of differentiated pricing strategies on revenue management in a
specific sector of the travel and tourism industry..............................................................................4
LO 2............................................................................................................................................................4
P3 Review the different stages of the HR life cycle applied to a specific travel and tourism job
role, and their importance for retaining and developing talent........................................................4
REFERENCES..........................................................................................................................................5

INTRODUCTION
Tourism includes all activities wherein people travel to and stay in places that are usually
outside their usual environment. It can be for different purposes like business or leisure and
contributes to the overall development of an economy significantly. There are various
organizations that operate within the travel and tourism industry across the globe. Organization
chosen for this report is Topdeck, a UK based tour operator that provides trips for people. The
company was founded by Graham Turner in the year 1973 and is headquartered in London,
United Kingdom. The report examines the key principles of revenue management for tourism
and travel industry. It also includes an assessment of how can human resource life cycle can be
managed.
LO 1
P1 Discuss the rationale and principles of revenue management for the travel and tourism
industry
Revenue Management can be defined as applying analytics that forecast the consumer
behavior at the micro-market level and thereby optimize the product availability as well as price
in order to maximize the growth of revenue. The rationale of organizations within the travel and
tourism industry behind implementing a revenue management strategy is to predict, forecast
and optimize their inventory. The various principles of revenue management in context of
Topdeck are explained below –
Market Segmentation – This involves subdividing the markets, channels as well as
customers into different groups based on their needs.
Forecasting – This is another principle off revenue management which involves
predicting the demand based on different quantitative methods and logic.
Inventory Pooling – Inventory pooling in revenue management wherein the inventory is
integrated at a central location rather than stocking up the same at a central location.
P2 Investigate how a specific sector of the travel and tourism industry applies revenue
management tools to generate and maximize profit
The travel and tourism industry consists of different sectors like accommodation, food
and beverage, transportation, travel services etc. Topdeck primarily deals with accommodation
as it provides trips to people living across various geographic locations. The revenue manager

in the organization uses various revenue management tools in order to generate and maximize
profits. The same are explained below –
Property Management System – This revenue management tool helps in making the
workflow easier and allows the front desk to create a perfect experience for the guests.
Booking Engine – This is one of the most important tools that assists in managing the
direct point of sale within the organization. The tool facilitates international reservations without
any kind of human intervention.
M1 Analyze the impact of differentiated pricing strategies on revenue management in a specific
sector of the travel and tourism industry
Differentiated pricing strategies can be defined as strategies that allow an organization
to adjust the pricing which is based on various situations. In travel services, differentiated pricing
strategies involve selling the services to different customers at different prices. This means that
sometimes certain customers pay less for a trip as compared to others. This type of pricing
strategy is strong and effective. It can have a positive impact on an organization as a result of
which its profit is maximized.
LO 2
P3 Review the different stages of the HR life cycle applied to a specific travel and tourism job
role, and their importance for retaining and developing talent

REFERENCES
Books & Journals
Online