Legal Laws and Regulations for Business

The provided assignment emphasizes the significance of adhering to legal laws and regulations in running a business smoothly. It discusses the current and future value of nature-based tourism, sustainable tourism, creative tourism, and cultural tourism, highlighting the need for businesses to follow proper procedures to ensure success. The assignment also touches on green growth, travelism, business intelligence, ecotourism, and digital marketing, providing a well-rounded understanding of these concepts.

The Travel and Tourism
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Rationale and principles of revenue management in relation to travel and tourism industry3
P2 Specific sector of travel and tourism industry applies revenue management tool in order to
generate and increase profit...................................................................................................5
LO 2.................................................................................................................................................6
P3 Different stages of HR life cycle and importance for retaining and developing talent.....6
P4 Performance management plan.........................................................................................8
LO 3...............................................................................................................................................10
P5 Legislation which is required for travel and tourism industry to adhere........................10
P6 Impact of Employment and contract law on business decision making in travel and tourism
industry.................................................................................................................................10
LO 4...............................................................................................................................................11
P7 Different types of financial statements............................................................................11
P8 Importance and value of budget for controlling business performance .........................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Travel and tourism sector is the fastest growing sector of the world. Apart from that, tourism
is a set of functions which is performed by several individuals for accomplishing their different
purposes. In addition to this, it is a business in which a person attracts other individuals and
provides accommodation services to them. The main motive of these businesses is to provide
gain huge profitability and assist the government in enhancing their economic condition. Chosen
organisation for this assignment is Cosmos Holidays which is an independent tour operator along
with based in UK (Roweis, 2018). Company was founded in 1961 and now company is
providing tourism services across the world. Under this report the rational principle of the
revenue management are discussed. Along with the stage of HR life cycle. The plan of
performance management is also discussed with various governing bodies inside the
organisation. At last, report will discuss about several kinds of financial statements along with
necessity of budget for the organisation.
LO 1
P1 Rationale and principles of revenue management in relation to travel and tourism industry
Revenue management is the term which is related with over viewing and supervising of
overall cost and profitability of a particular organisation. As Cosmos Holidays is operating their
business operations in tourism and travel sector then for them income management is related to
effectively and efficiently measurement of cost and benefit in their tourism services,
accommodation and overbooking across the globe. Apart from that, Income management is
consists of judgement of ADR, availability of services and set a standard charge per unit so that
revenue of organisation can automatically enhance. In the context of Cosmos Holidays, their
finance manager should make proper focuses on their tourism services, accommodation,
entertainment or food services so that profitability would be enhanced of their organisation. In
addition to this, through predicting customer’s needs and wants and providing services
accordingly to them can also make their good customer base in marketplace.
Rationale and Principle of Revenue Management.
 Revenue management also provide huge assistance to the organisations in implementing
innovation in their existing products, services and making attractive pricing strategy so

that large number of customers would be attracted towards offerings of organisation and
revenue base will be make stronger of the firm rather than their competitors.
 This management plan also provide huge assistance to the managers of organisations
in reducing the cost of their operations which is mainly related with traditional
pricing tactics.
There are several of the major principle of revenue management which are related with
tourism & travel industry, are given as below:
Market Segmentation:
In it, customers are primarily segmented into qualifies & non-qualifies and it categorisation is
mainly depended on the characteristics of customers so that services can be provided to them
accordingly. Main motive behind this principle of revenue management is to increasing the sales
figures. With the help of this segmentation, Management of Cosmos holiday will easily
maximise their sale and profitability (Skybakmoen, 2016).
Historical Demand and Booking Patterns:
As per this principle, management of Cosmos Holidays have to evaluate and analyse their
past historical data and traditional plans so as to gaining capabilities of formulating plans for
attracting a large number of consumer towards their services. With the help of it, the
management of Cosmos Holidays will be able in analysing potential needs and wants of
customers and it maximise the chances of gaining more revenue and profitability.
Overbooking:
This is the principle which is mainly associated with offering large number of
reservations than the actual capability of a firm. This process is proving beneficial for the
organisations when cancellations are more than the reservations. Main objective behind this is to
enhance the level of overbooking for increasing the revenue and reducing risk which can be
made by the customers at the time of more cancellations than the reservations.
Revenue Management Tools
Discount Allocation:
By taking support of this technique and tool, Cosmos Holidays can offer a huge compass
of discount offers to their new & existing guests. They also offer discount coupons and attractive
bonuses to their customers on their advance bookings which will automatically builds positive
image of organisation in the mindset of customers. They can also provide discounts and bonuses

in a seasonal period which will automatically enhances their customer base and sales figures in
marketplace.
Capacity Utilization:
In a tour trip, there are fixed figure of availability of seats which should be properly
reserved by the customers so that there is no chance to face the loss which is faced by
organisations. Therefore, it is very essential to the management of Cosmos to organise trips
according to the availability of customers so that good revenue will be gained in a less time
period. For this, Managers have duty to evaluate reservation capacity of trip so that all facilities
would be given to the customers in effective manner. For e.g. managers of Cosmos have
organised a trip for 150 passengers then it is essential for the reservation managers to fill all the
seats in a time period so that capacity would be utilised in optimal manner (Roweis, 2018).
Differentiated Pricing Strategies
These are the pricing strategies which involve price discrimination which states similar type of
goods are old to different group of buyers but in nthe proportion of cost. These strategies
include-
 Strategy of periodic discount- It is a strategy which causes reduction in the prices of the
products according to the existing trends. It is done in fashionable goods, movie ticket
prices and many other services. It has a positive impact on the business as it will help the
company to target large number of customers.
 Strategy random discount- It involves setting a high price of products and then reducing it
This strategy allows to attract the discounted informed customers. It has a positive impact
on the business as it will attract the customers who prefer wish to avail the service at a
discounted rate and therefore enhances profitability.
P2 Specific sector of travel and tourism industry applies revenue management tool in order to
generate and increase profit
There are numerous aspect in which tourism and travel industry operates their functions
like tourism service, accommodation, organising events and seminars, foods and beverages etc.
for gaining sustainability in market and providing tough competition to their rivals, it is very
essential for Cosmos to perform their activities and functions in a well manner so that any
trouble wouldn’t be faced by them. There are few functions of Cosmos in which they can easily
implement revenue management tool for enhancing their profitability.

Food and Beverage department of Cosmos Holidays:
Various functions are performed by food and beverages department like providing better
quality of food to customers, decorating the cuisines, providing meal as per their requirements
etc. this department plays an important role in travel and tourism sector. Duty of this department
is not only to satisfy the needs of customers but also assisting the organisation in gaining better
reviews from the customers. Therefore, it is essential for the management of Cosmos Holidays to
manage all the functions of this department in proper manner so that better satisfaction from the
customers can be gained in easy way. For this, they can also implement review score tracking
tool so as to gaining better advantages in future. In order to gaining all these advantages in a
short time period, management of Cosmos Holidays should provide effective training and
development to their employees about the needs of customers so that employees of this
department would execute their duties in well manner and contributes in growth and success of
organisation.
Food and beverage department of Cosmos Holidays offers a wide variety food products
to their customers so as to satisfying their needs in better manner. But for gaining sustainability
and effectively competing their rivals, management of Cosmos Holidays should implement
effective strategies for their operations so as to gaining profitability in marketplace in a short
time period. For this, they can also take support from the review score tracking tool through
which they will identify the number of satisfied and dissatisfied customers and make changes
accordingly. Process of review score tracking can be understand by an example such as
employees of food and beverages department take orders from particular customers and provide
food to them accordingly. if they will satisfied from the services they will provide better reviews
and scores as their feedback on this tool. Therefore, management of Cosmos Holidays should
adopt this system so as to gaining better feedbacks from their respected customers. It is also
essential for them to implement certain measures in their workplace like interact efficiently with
the guests and provide all the information which they have required. They should also provide
memorable things like Memento, postcards or maps of hotel to the visitors so that positive
ratings can be achieved from them in a systematic manner. All these strategies and measures will
be beneficial for Cosmos Holidays in enhancing their market share and profitability (Shin, 2015).

LO 2
P3 Different stages of HR life cycle and importance for retaining and developing talent
Human resource is an important aspect of each organisation because without their presence
functions or operations can’t be operated in successful manner. Human resources having a
specific life cycle in which various stages are included and they also performs their duties
according to these stages. Each phase of this life cycle have own challenges, benefits and
opportunities. There are different stages included in HR life cycle in which they take their
necessary decisions for solving problems or difficulties which occurs in their daily activities so
as to providing growth and success to the organisation.

Recruitment:
Recruitment is the first step of HR life cycle that includes hiring or recruiting of right
candidates for right job. When right persons will hire in the organisation then it indirectly
increase the turnover and profitability of firm. In the context of Cosmos Holiday, managers have
duty to prepare a well job description and fill all the requirements which are expected from the
organisation which help to fill the vacant job position of organization. For e.g. assistant manager
of food and beverage are required in the firm so that all functions of department would be
performed in effective manner. Therefore, managers have duty to hire those persons who are
fulfilling the expectations of organisation and having better qualification and experience for
performing this function (Capatina, 2016)
Education:
This is a fundamental process in which managers have to provide better training to the
hired candidates so as to understanding them their roles and responsibilities for the organisation.
In the context of Cosmos Holidays, managers have provided better training to their newly
appointed assistant managers so that they can easily understand the working structure of
organisation and performs their duties in desired manner. They have also provided knowledge to
the newly joined managers about the tourism cultures so that there is no difficulty would not be
faced by employee in their working.
Motivation:
For increasing turnover rate of organisation motivation element plays an effective role in
the organisation. It not only encourage the workforce to perform their task but also leads the firm
towards high productivity and high profitability. In context of Cosmos Holidays, managers
should also take support from their newly appointed assistant managers of food and beverage
department so that they does not feels satisfied and always encouraged towards performing their
tasks.
Evaluation: In it, management of organisation organises numerous activities so that
actual performance level of their workforce can be identified in easy manner. In the context of
Cosmos Holidays, their management should evaluate performance level of their newly appointed
assistant food and beverage manager so that need of training can be identified and efficiency will
be grown in expected manner.

Celebration:
This is the fifth or last stage of HR life cycle in which it is very essential for the
organisations to reenergise their workforce and provide them thanking messages for their efforts
in the work. In the circumstance of Cosmos Holidays, they have implemented strategies of
providing extra bonuses on over time for the managers of each department main objective behind
these strategies is to energise the workforce of organisation and appreciating them for their hard
working.
From the all above phases of HR life cycle, it can be said that all these steps would
ultimately assist the Managers of Cosmos Holidays in building positive image of themselves in
the mindset of their employees and enhance the profitability of firm in well manner.
Importance of HR life cycle in retaining and developing talent
Employees motivation to attain goals: Managers of Cosmos Holidays also encourage
their employees so that their loyalty would be enhanced for organisational goals and objectives.
For this, they provide incentives or rewards so that preset goals would be achieved in easy
manner.
Retain top talent: HR life cycle basically assists the management of Cosmos Holidays in
retaining eligible and knowledgeable candidates at workplace so that their maximum efforts can
be gained for achieving organisational goals.
P4 Performance management plan
For accomplish organisational objectives in well manner it is very important to each firm
to formulate effective action management plans so that future challenges faced by company can
be overcome and prosperity would be gained in upcoming period of time by firm. In the context
of Cosmos Holidays, it has been known that there were many problems faced by tour operators
during the trip. Most of the employees of food and beverage sector are facing problems regarding
the working structure of firm and refusing to take additional duties, not satisfied at workplace in
performing their functions with colleagues. These all factors have created a serious situation for
the management and they are troubled about high employee turnover rate (Pappas, 2016).
Therefore, management of Cosmos Holidays have decided to frame performance management
plan which are briefly explained as below:
Assess current performance management process:

In this factor, it is very important for the managers of Cosmos Holiday to identify actual
strength of their working structure which includes availability of workforce, material and
resources so that organisational objectives will be framed accordingly. they should also analyse
current weaknesses of their current management plans and working structures so that effective
measures can be taken by them in order to rectify the situation.
Set objectives and Goals:
After setting organisational objectives, it is essentially required for the managers of
Cosmos Holidays to frame effective group of employees so that better contributions can be
gained by them in future period. It is also provide beneficial results to the managers because
when employees will worked together then better understanding will be made among them
which will be profitable for the firm in order to achieving their goals or objectives in a given
time period.
Create and action plan:
After framing goals or effective teams, next important step for the managers of Cosmos
Holidays is to take support from their experienced employees and frame action plans accordingly
so that situation of increasing employee turnover can be resolved in easy manner. For this, they
can also provide roles and responsibilities to their employees as per their capabilities so that
given task should be accomplish in easy manner and conflicts of employees wouldn’t be faced
by the senior managers.
Keep track of progress:
This is last but more important step of the performance management plan in which
managers of Cosmos Holidays should monitor the performance level of their each employee
whether, they are tour operators or they are employees of food and beverage sector. So that, if
any weakness will be identified then it would be rectified through providing training to them. By
doing these functions, management of Cosmos Holidays will achieve their desired goals or
objectives in timely manner.
All these steps of performance management plan prove profitable for the Cosmos
Holidays because through it problems which are identified by them will be resolved in easy
manner. It will also beneficial for the firm in gaining better participation of their each employee
in the functions of organisation. This will also enhance mutual understanding between
employees due to which conflicts among them will be reduced in effective manner. In addition to

this, through considering actual needs or wants of their employees and fulfilling them
accordingly company can retain their frustrated and dissatisfied employees in their workplace for
a long time period (Shin, 2017).
Performance Management Plan
It is one of the beneficial tool which will assist the company to develop proper tools and
techniques so as to resolve negative behaviour of the employees and to overcome the problem of
staff retention and therefore creates a harmonious work place environment. Therefore
Performance Management Plan within the respective company is described as follows-
 PLAN- In Cosmos Holidays, it requires manager to develop a set of proper rules and
regulations so that proper and effective services are provided to the customers.
Moreover there is a issue of of negative behaviour of the employee as their are conflicts
and issues which leads to the problem of staff turnover. Therefore manager should plan
proper strategies such as involve them in decision making process towards reducing
negative impact of employees.
 Implement- Being the HR within the respective company it is necessary to implement
set of strategies and each employee should be provided with training so as to reduce its
negative impact and reduce problems associated with staff retention.
 Evaluate- After implementing the plan it is necessary for the HR manager so as to
evaluate that the planned strategies have reduced the problem and enhance the
performance of the employees. This further helps them to take proper decision towards
minimising the problem.
 Feedback- It is the last step of the performance management plan in which feedback is
taken by the customers regarding the employees behaviour within the organisation. This
will help the company towards taking proper decisions and re framing of the strategies
in a proper manner and lead towards solving the issue within the organisation.
LO 3
P5 Legislation which is required for travel and tourism industry to adhere
Each and every organisation should perform their function in a set of regulatory
framework so that there is no difficulty wouldn’t be faced by company in future. In context of

Cosmos Holidays, there are some acts and legislations which should be followed by their
managers so as to running business operations in smooth manner, are given as under
The Tourism Act 2011: Act number 28 of year 2011 was formulated with an objective of
managing, developing or regulating the activities which are related with tourism industry. This
law must be followed by the Cosmos Holidays so as to operating their business functions across
the world in most effective manner.
Food Safety Act 1990: This law was formulated by UK government for setting a standard
of food quality for the travel and tourism sector. This act includes various elements like safety of
food and beverage, decoration of food, usage of better quality ingredients etc. As Cosmos
Holiday is also a part of travel and tourism sector and also offers a wide variety of food products
to their customers then, it is very necessary for them to follow this act in effective manner so that
brand image of firm would be maintained in marketplace effectively (Cohen, 2017).
From the above laws it has been identified that managers of Cosmos Holidays are
following the tourism and food safety act which is positively impacting on the brand image of
company. The company is attracting a large number of customers due to following of these laws.
P6 Impact of Employment and contract law on business decision making in travel and tourism
industry
Employment Law- It is the group or the collection of the laws that determine and
properly regulate relationships between employers and the employees. This law is applicable
within the respective travel and tourism business and their main purpose is to prevent and protect
the workers right. In context to the employees within the respective organisation it prevents the
discrimination among the employees as well as promotes health and safety at workplace. It also
determines equal or minimum pay which is to be given to the employees as prevent disruption
among the labour and management within the organisation. It has a impact on the business
decision as it will increase the responsibility of the management to to ensure that workers are
provided with a safer and healthier work place environment as well as take measures to reduce
conflicts among the employee and assist them towards efficient working.
Contract Law- In general it is the body of laws that is related to framing and enforcing
agreements. It is basically focused with the area that is governed during making contracts so that
fair remedy can exist when there is a breach. It has a impact on the decision making for the
business it allows the management within the respective organisation to ensure that both

respective tourism company and consumers uses contracts when they buy and sell their services .
This will allow the organisation to conduct their business in a proper and effective manner.
Employment and contract law effectively influence the decision making of organisation.
As Cosmos Holidays is operating its functions in Travel and tour sector, therefore it is essential
to them to maintain equality at the workplace so that any employee of firm wouldn’t be
dissatisfied from the behaviour of management. They should also provide remuneration to their
employees on the basis of equal pay act, 2018 so that, employees feels motivated while working
in the organisation and doesn’t provide any impact on the decision making of firm. Adherence of
these laws are very beneficial for the management of Cosmos Holidays because it provide huge
support to them in managing their business operations in legal and ethical manner. Whereas, if
management of Cosmos Holidays will not follow the above legislations in effective manner than
it negatively impacting on their working which is not beneficial for their brand image. Apart
from that, management of Cosmos is adhering roles and responsibilities properly so that
company can gain better opportunities in future.
LO 4
P7 Different types of financial statements
There are various kind of fiscal statements which is made by the organisations in order to
showing the actual position and performance of firm to the stakeholders, these statements are
given as under:
Income statements: This kind of statements includes overall income and expenditure of
organisation so that profitability would be decided by the managers of organisation in effective
manner. These statements are also provide supports to the mangers of Cosmos Holidays in
managing their functions as per their budget.
Balance sheet: This statement consists of overall assets and liabilities of Cosmos
Holidays for a specific period of time. It is also categorised in three kinds like investing,
operating, financial activities which also supports the managers of Cosmos in making decisions
for investing more funds or paying current liabilities.
Statement of changes in equity: In this, all the modifications in equity are shown of a
specific time period. This changes are consists of profit or loss, issued dividends, purchase or
sale of shares.

These are the different types of financial statements which help the manager within the
respective company to analyse the profit and loss conditions and therefore takes proper actions
and decisions so as to enhance the productivity and profitability of the enterprise. Moreover
proper information about the cash inflows and outflows help the manager within the organisation
and results in proper functioning.
P8 Importance and value of budget for controlling business performance
Proper formation of budget provide beneficial outcomes for the firms in order to
performing their functions in effective manner and without facing any kind of financial
difficulties of future (Bayliss, 2014). There are some main importances or values of budget are
given as under:
 Budget is an important aspect of each firm as it provide suitable ways to the managers for
overcoming the situations of financial risks. In the context of Cosmos Holidays, their
managers should prepare a budget before starting of financial year so that all functions or
operations would be operated in easy manner.
 Proper budget also provide beneficial outcomes to the managers of Cosmos holidays
because with the help of it, they can monitor all expenses of their each department like
HR, reservations, tour operating departments etc.
CONCLUSION
From the above report, it has been concluded that travel and tourism business toolkit
plays an crucial role in successfully operating of each activities. Revenue management plan is
very important because with the help of it, managers of organisation can make plans for
effectively utilising their resources so as to gaining profitability. Legal laws and regulations
should be followed by each firms in proper manner so as to running their business in smooth
manner.

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