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Revenue Management in Tourism and Tourism Business

   

Added on  2020-12-10

13 Pages4069 Words365 Views
TRAVEL AND TOURISMBUSINESS
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1PART 1: SCENARIO 1 (LO 1 & 4)................................................................................................1Concept of revenue management...........................................................................................1Application of revenue management tools in Thomas cook..................................................2Impact of differentiated pricing strategies on revenue management......................................2Principles of revenue management and its application on tourism and recreation sector......3Different types of financial statements and reporting mechanisms for Thomas Cook..........3Importance and value of budgets for controlling business performance and identifyingvariances.................................................................................................................................4Interpretation of financial statements and reports with making evaluation of businessperformance based on same....................................................................................................4PART 2: SCENARIO 2 (LO 2).......................................................................................................6Human resource life cycle and reviewing of different stages of the HR life cycle................6Performance management plan for the human resource executive........................................6Importance of the HR life cycle in relation to strategic talent management and overcomingissues of staff retention...........................................................................................................8PART 3: SCENARIO 3 (LO 3).......................................................................................................9The way legal issues affect travel and tourism industry and specific legislation thatorganisations have to adhere with..........................................................................................9Analysing the way in which company, employment and contract law has potential impact onbusiness decision-making.....................................................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
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INTRODUCTIONTourism is the set of activities of people travelling to and staying in places outside theirusual environment for leisure, business or other purposes. A lot of companies are engaged indoing business related to it. Present study will lay emphasis on Thomas Cook Group which is aBritish global travel company that has been listed on the London Stock exchange. Firm isengaged in operating in five main divisions that include UK, Central Europe, Germany, WestEurope and Northern Europe. Report highlights the key principles of revenue management fortravel and tourism industry. It will also lay emphasis on managing budget and maintainingstatistical and financial records. PART 1: SCENARIO 1 (LO 1 & 4) Concept of revenue management“REVENUE MANAGEMENT” is the crucial responsibility of the organizations/ firm/industries to manage the revenue wisely and smartly. Revenue generated in any sector of themarket must be properly managed for fulfilling further requirements of the business. For theservice sectors like Travel and Tourism Industries, the process of revenue generation, utilizationand management all has to be conducted properly. The Travel and Tourism Industries focusesupon its pricing strategy, market segmenting and many other related policies to control andmonitor its revenue system. As far as the revenue management of travel and tourism industries are concerned, themanagement of THOMAS COOK must be considered. Thomas Cook, a renowned serviceprovider in the sector of travel and tourism generates ample of revenue every year. It hasadvanced Revenue Management Software to control, evaluate and monitor the profits and marketshares of the company(Swarbrooke and Horner, 2012). It consists of a huge network ofmanagement team for researches, analysis and forecasting. For its revenue management, thecompany conduct audits at a regular time intervals. Also, the involvement of the company in thecapital acquisitions hike its profit rates and revenues. It believes in delivering the services andmanaging the revenues by adopting new criteria of revenue management, making connections,innovations, enhancing the portal. It is continuously utilizing various efficiency and productivity enhancement tools forcontinuous revenue generation and management. It provides the best possible platform to the1
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workforce for better performance and efficiency. EXPLORE is the inventory management toolused by it for proper management of cash flows and revenue generation. It also has well definedstatistical segmented platform for the analysis of the provided services. Hence, adapting theadvanced network of technologies, software and strategies, Thomas Cook has an efficient teamfor its revenue management that directly influencing its growth in the global market.Rationale for using revenue managementRevenue management can support Thomas Cook group in maximising profit. It cansupport firm in controlling inventory, by this technique company can also increase or gainmarket share.Principles of revenue managementMarket segmentation: Company must be engaged in segmenting market according totraits like similar interests, needs or locations. For enhancing the sectors like tourism andrecreation centre segmentation can be done by Thomas Cook group on the basis of demography.As these services are mostly availed by young adults or middle aged people firm needs to focuson that. Leisure customers tend to book earlier and are flexible about when they fly and arewilling to sit in coach seats to save more money for their destination, whereas businesscustomers tend to book closer to departure and are typically less price sensitiveHistorical demand and booking patterns: For enhancing the sector like tourism andrecreation centre Thomas can engage in forecasting the booking patterns of guest and makeavailability of services accordingly. This will help them in effectively managing the revenue. Pricing and inventory management: Thomas Cook can engage in setting pricingstrategy accordingly which creates value for the consumer. This will help them in attractingconsumers. Revenue management is highly concern with managing inventory, they can lowerprice of services related with tourism and recreation to attract consumers. Application of revenue management tools in Thomas cook In Thomas Cook, the revenue of the firm can be effectively increased with the help of thenew and upgraded version of technologies that smooths all the aspects of revenue generation,2
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