The Travel and Tourism Business Toolkit PDF
Added on 2020-10-05
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The Travel andTourism BusinessToolkit
Table of Contents
INTRODUCTION Tour and travel industry is the fastest growing industry in the world. Tourisms is acomplex industry made up of different businesses with a common theme of providing productsand services to tourists. The given assignment is based on British Airways (BA) which wasfounded in 1974 at London Heathrow Airport. It is among the largest airline which consists oftwo airport hubs situated at Heathrow and Gatwick airport and consists of 183 destinations. Thisreport will analyse the importance of revenue management in the industry which can be used asan tool in to order to generate and maximise profit. It will also review stages of human resourcecycle and the importance of retaining and developing talent while providing technique to resolvenegative behaviour (Bayliss, 2014). Later part of the report deals with the legislation that are tobe followed and kept in mind while operating in the market. PART1Examine the key principles of revenue management for the travel and tourism industryRevenue management is defined as an analytics, which assist to know the behaviour ofcustomers, so as to ensure product availability and price can be optimise which is done in orderto maximise the revenue possible (Budeanu and et. al., 2016). In the industry it's chief purpose isto increase revenue while selling the same number of product and services. Successful revenuemanagement involves understanding of customer thinking process and finding out theirperception of value. Thus primary aim of revenue management is to sell the right product to theright customer at right time and place along with right pack. There are certain element andprinciple of revenue management that have been analyse while working as a graduate that can beelaborated below: Yield ManagementIt is pricing strategy which is focussed on anticipating and understanding the consumerbehaviour so that it can be further influenced for maximization of profit or revenue. Which canbe done from fixed and time limited resources such as airline seats, advertisement and hotelreservation (Lamsfus and et. al., 2015).Rationale and Principles of Revenue Management The rationale of revenue management are as follows:
It assists in creation of new product and services and also in their pricing.It helps in maintaining balance among revenue mangers and other managers such asgeneral manager and hospitality manager. Coordination among different manger will helpthe organisation to work more efficiently and effectively.As the tradition pricing tactics consists of Hugh amount of cost and time adoption ofrevenue management will help the organisation to eliminate it.Different principle of revenue management in travel and tourism industry can be elaboratedbelow:Market Segmentation- It comprises of classification of customers into qualified andnon- qualifies classification. These segmentation are based on attributes of consumers which willhelp in maximizing overall revenue of the organisation. As per segmentation revenue is furthergenerated by the organisation which will help the company to maximise it's sales and revenue. Historical Demand and Booking Patterns- This principle comprises of using andstudying historical data in order to plan for the future activities. It help in analysing customerbooking pattern which will help in providing valuable information which will help business toearn more revenue and sustain growth (Budeanu and et. al., 2016).Demand Forecast and Displacement Analysis- Demand forecasting have a Hughimpact on revenue of hotels. In order to occupy product in accordance with demand of customersdemand forecasting plays an important role. If the assumption generated are right then highrevenue can be earned Where as if the assumption is wrong then it lead to decline in revenue.Overbooking- It comprises of selling more then the actual capacity of the business. Suchprocess can serve as effective factor in case of cancellation of booking by customer. The reasonbehind it is to encourage revenue and minimize risk associated with refused services.Revenue Management ToolsThese tools are being used by organisations in order to maximize the generated profit. Itshould be applied by businesses in order to work effectively some of the revenue managementtools can be elaborated below: Capacity Utilisation- As there are fixed number of seats available in the airline thebusiness needs to utilize it properly. British Airway will make reservation in accordance with thecapacity . Reservation will be done in accordance with the customer needs so that they get all therequired facilities. For example if BA has capacity of 60 individual in the flight, they should only2
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