The Travel and Tourism Business Toolkit - British Airways Plc

   

Added on  2020-11-12

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The travel and tourismbusiness toolkit
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Table of ContentsINTRODUCTION...........................................................................................................................2PART 1............................................................................................................................................2Definition of revenue and yield management.............................................................................2Rationale and principles of revenue management......................................................................2Investigation of applying revenue management tools to maximize profit..................................3Impact of pricing strategies on revenue management.................................................................4PART 4............................................................................................................................................4Managing budgets and maintaining statistical as well as financial records................................4PART 2............................................................................................................................................7Covered in PPT...........................................................................................................................7PART 3............................................................................................................................................7Potential impact of legal and ethical considerations on business ..............................................7CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................111
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INTRODUCTIONTravel and tourism industry is one of leading industry in UK. In order to operate thebusiness smoothly, the companies should manage their focus on finding the business toolkitwhich can enhance their business productivity. In this report, British Airways Plc is taken intoconsideration which is based in London with significant presence at Heathrow, Gatwick andLondon city Airports. It is a founding member of one world alliance which serves in more than1000 destinations over 150 countries. This report includes key principles of revenue managementin travel and tourism industry and management of human resource life cycle within the contextof an HR industry. Apart from that, this report also include potential impact of the legal andethical consideration on a travel and tourism business. In the end, the management of budget,statistical and financial records is being taken into consideration.PART 1Definition of revenue and yield managementRevenue management is the art of managing the pre demand of customers andoptimizing inventory and price availability to increase the growth of revenue. This managementalways deals in the demand of customer and sell the product or service accordingly. Thecompany will sell the product when price is higher but if price is not supposed to be higher thecompany will sell the product in lower price in order to decrease the inventory cost.Yield management is an art of settling the pricing strategy by anticipating,understanding and influencing the behaviour of customer (Morrison, 2013). This managementhelp the company in maximizing the profit margin by servicing the customers according to theirdemands.Rationale and principles of revenue managementRevenue management is important for the organizations in order to manage the cost ofinventory. Apart from that, it also help the companies to identifying when the price ofcommodity will be higher and lower. Accordingly, organizations can easily forecast the demandof customers. This will help them in producing the services or products according to themarketing conditions. In case of British Airways, the demand of customers in future can bepredicted by the management of company and thus increasing the profitability. The fare of2
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company can also be set according to the situation and hence can company can also prepare itselfto grab the opportunity.Principles of revenue managementThe principles of revenue management are stated as follows:Market segmentationIn this principle, customers are divided as per their attributes and thus services of BritishAirways supplies to them (Lamsfus and et, al, 2013). This will help the company in satisfyingthe needs of customers and thus profit increases.Historical demand and booking patternsAs per this principle, the demand history of customers is investigated so that their choiceof interest can be identified by British Airways. This will help the company in providing theirneeds and thus profit increases.Demand forecastingDemand forecasting is the method through which future demand of customers cab beidentified. This principle help British Airways to predict the needs of customer before theirdemand and thus providing services to them. The profit margin of company increases assatisfying their demand.Investigation of applying revenue management tools to maximize profitRevenue management tools help the company in identifying the ways through revenuecan be maximized. Following are the tools of revenue management.Capacity UtilizationCapacity utilization is the process through which maximum capacity of British Airwayscan be utilized. If flight is having capacity of 90 passengers the company should consume all ofthem for maximizing their profit (Mowforth, 2015). This can be done with the help of providingoverbooking facility to the customers in case of cancellation of reservation.Discount allocationThis process is settled for the customers who are willing to travel frequently in BritishAirways. The company should gather the data of such customers and can provide discount tothem. This strategy will be helpful in off season to encourage the customers to go some otherplace. Hence increasing the revenue of company.3
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