Travel and Tourism Business Tool kit

This document discusses the rationale and principles of revenue management, differentiated pricing strategies, HR life cycle, and the impact of legislation on decision-making in the travel and tourism industry. It also explores the importance of budgeting and financial statements.

Travel and Tourism Business Tool kit

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Rationale and principle of revenue management........................................................................3
Application of Revenue Management Tool................................................................................4
Differentiated Pricing Strategies.................................................................................................4
HR Life Cycle.............................................................................................................................4
Performance Management Plan..................................................................................................5
Performance Management Plan..................................................................................................5
Importance of HR life cycle........................................................................................................6
Legislation...................................................................................................................................7
Laws impact on decision-making................................................................................................7
Implication of regulation, legislation and standards on decision-making...................................8
Different type of financial statement and reporting mechanism.................................................8
Importance and value of Budgeting............................................................................................9
Interpretaion................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Tours and travel industry in huge industry in nowadays. They are providing facilities to
the customers to tours and travels from one place to another. They are providing facilities like
transports, hotel, food, tour packages etc. They will help customers and tourist to enjoy their life
and special moments at attractive prices.
Expat explore travel company is being taken into consideration, it is the popular tour
operator of London that offers luxurious travel facilities to consumers (Schuckert, Liu and Law,
2015). They are providing services like holiday package, flights, hotels etc. In this study will
discuss the all the types and policies of tours and travel industries. In this study will include
rationale and principle of revenue management, tools of revenue management and differentiated
pricing strategies. In this study will also conclude, HR life cycles and performance management
plan, the importance of HR life cycle. This study will also explain about different legislation,
impact of company, employment and contact law of decision-making and implication of
regulation, legislation and standard on decision-making of company (Schuckert, Liu and Law,
2015). the end of this study will conclude, financial statements and reporting mechanism,
importance and value of budgeting and critically evaluation of financial statement.
MAIN BODY
Rationale and principle of revenue management
Revenue management is a based on the conceptual framework that will increase high
demand and helps for stimulating demand in low periods. It is also beneficial for avoiding
pricing cannibalism for long term growth and development. The tourism industry will help for
selling the room in lower price to fulfil demand of people. This type of concept is not increased
high period demand and help for improving business growth.
The principle of revenue management:
 It continuously gained the acceptance in the tourism industry by improving the quality of
services and products.
 To provide an efficient training to the staff members so that they can easily identify
significant need and requirement of customer.
 An integration strategy implemented on business process for increasing profitability and
productivity in marketplace.

Organization maximising profit
 Promotional activities: In order to maximise profit company can involve in doing
different types of promotional activities, like they are promoting their goods and services
on various social media websites like Facebook and Twitter.
 Advertising on right channel: Firm is also been involved in doing celebrity
endorsement if television to reach out large number of consumers. This has supported
them in maximising their profit.
 Awareness of their product: Through promotional activities they are also making
consumer aware about their goods and services so in order to increase sales which can
maximise their profit.
There are various revenue management tools available in market which is use by Expat explore
travel. These tools are as follows:
 Inventory Pooling: In this effective inventory management is been done by company so
that they can engaged in maximising profit.
 Market segmentation: In this market is been segmented so that each activity or task
carried on by company can be effectively managed. They also segment the market on
basis of targeted consumers so that they can maximise profit.
 Central Reservation System(CRS): It is most effective tool which is used by the
companies of tours and travels. Expat explore travel also use this tool for maintain
reservation and for preventing double booking and keeps availability update in system
and channels. It is two-way process of booking (Yüksel, 2017). With the help of this tool
customers know that booking is available or not. In CRS three solutions are available
such as TravelTipper, Windsurfer by SHR and TravlClick's iHotelier.
 Revenue Management Software (RMS): Another tools which is used by Expat explore
travel and other tours and travels industry is RMS. This tool help Expat explore travel
company to create pupation in their prizing strategies. Such as when demands of travels
and tickets is high, this tool automatically improve the price of tours packages (Yüksel,
2017). With the help of this tool tours and travel industry also improve and reduce their
price rate.
 Business Intelligence Tool: Business intelligence tool is use by the tours and travel
industry to improve business standard (Kang, Kim and Song, 2019). This tool is also us

by the Expat explore travel, this tool provides knowledge and information to the industry
what are the current status of the market and how organization will improve their
performance.
Application of Revenue Management Tool
Expat explore travel is also applies those tools of revenue management in their industry.
With the help of these tools Expat explore travel can improve their standard in the market and
also improve their business performance.
Such as by the using central reservation system, Expat explore travel will know that what
are the rate of travel, date and timing of next tours, also know about the data of their customers
and know about the vacant rate of booking (Eugenio-Martin and Inchausti-Sintes, 2016). With
the help of this system, Expat explore travel will find out information about all the tours and
travels. This will help company to revenue generation. Another tool of revenue management,
will be use by the business intelligence tool. With the help of this tool, Expat explore travel
know about the market situation and available trends in the market. And industry will know that
how they are able to improve their standards.
Differentiated Pricing Strategies
Expat explore travel can use the different pricing strategies for their revenue
management. For an example Expat explore travels us Price Per Segment Strategy with the help
of this strategy industry provide their tours and travels package at the same price to the different
customers in the market. For the revenue management organization also use Discount codes to
stimulate direct booking, by using this differentiated pricing strategy, Expat explore travel
provide discount policy to their booking. With the help of this technique customers attract
towards company tour packages and that will help to enhance revenue.
HR Life Cycle
For the job role of Travel Manager, HR life cycle will be as follows:
 Recruiting and on-boarding: For the job role of travel manager, Expat explore travel
industry follow the first step of HR life cycle (Lunt, Horsfall and Hanefeld, 2016). The
first step of recruiting and on boarding, company first start the plan job advertisement,
select candidate whose profile is most effective and attractive for travel manager job role,
next conduct interview in which industry management will find out that particular
candidate skills and qualities are sufficient for travel manager role. After the selection of

suitable candidate, the next step of on-boarding will start, in this Expat explore travel
involve new candidate in their system as employee. With the help of recruiting and
onboarding process Expat explore travel can hire efficient person for the travel manger
job role. Because in this process various steps are included and company follow that all
steps that will help company to find out right candidate.
 Orientation and Career Planning: In this step, Expat explore travel provide
information about the organization terms and policies, and also trained individual for
travel manager job role (Eugenio-Martin and Inchausti-Sintes, 2016). Also, in the career
planning step top management of Expat explore travel, will design policies and strategies
by which individual person can plan their career with the industry. The second step of HR
life cycle, person will learn all the basic things about the Expat explore travel, their job
role and also plan their career for travel manager role. Also, with the help of orientation
new person in the organization feel little bit comfortable because individual learn basic
things about the organization.
 Career Development: Person will work with Expat explore travel for long time
duration, after this it will also want some opportunities by this individual can get higher
post. For this Expat explore travel industry have to plan that how individual is retained
with the organization and how organization will help person for get their goals (Lunt,
Horsfall and Hanefeld, 2016). With the help of career development plan, person can
improve their professional life. Individual will also able to garb higher position within the
company.
 Termination and Transition: This is the last step of HR life cycle. In this step person
can leave the organization or can be terminated by the company. In this step it is
responsibility of Expat explore travel to conduct proper exit interview of person and will
find out the reason of leaving the organization. So, this is the HR life cycle which is use
by the Expat explore travel for the Travel Manager profile.
Performance Management Plan
Performance Management Plan
Issues Strategies Time Duration
Leadership Skills With the help of books, article 6-10 months.

and case studies. Also, by the
self learning and
implementation practices
(Woosnam and et.al., 2018).
Finance and Budget knowledge Internal and external classes
and also provide training.
2-3 months.
Language Skills Communication class, that can
be online and offline.
5-6 months.
 Leadership skills: The very first issue face by the travel manager is leadership skills.
Because in the tours and travel industry leadership skills are must. Without good amount
of leadership quality person not influence customers towards Expat explore travel
(Abubakar and Ilkan, 2016). For improving the leadership skills of travel manager,
management of Expat explore travel, give suggestion that continuously read the books
and articles which are based on the good leadership skills. And travel manager also
implements their self-learning by which individual will know the result. And it will take
almost 6-10 months for improving leadership skills.
 Finance and Budget Knowledge: The next issue is appeared in travel manager that is
finance and budget knowledge. For this management will give advice that join the
practical classes of finance and budgeting because they are very effective for improve the
knowledge of travel manager (Abubakar and Ilkan, 2016). Finance and budget
knowledge is very important in tours and travel industry, and it is also important that
travel manager have the ability of analytical skills. This issue of travel manager can be
solved within 2-3 months.
 Language Skills: As a travel manager person have skills of good language and
communication. For improving the language skills of travel manager of Expat explore
travel, management can give suggestion join communication classes that can be online
and offline (Woosnam and et.al., 2018). And also use new works and sentences in their
professional life. It will take 5-6 month for improving the language skill of travel
manager.

Importance of HR life cycle
By the effectively use of HR life cycle, Expat explore travel can improve the
performance of their travel manager and also retain them in the organization (Huang and et.al.,
2017). For the improving the performance of travel manager, company can provide them
effective training by which company can improve their skills which is required for the travel
manager job role. Expat explore travel also use HR life cycle method for retain their staff in the
company (Law, Chan and Wang, 2018). They are provided them training, rewards and appraisal
by which employees of company feel motivated and show their interest in the growth of the
organization. HR life cycle also help person to achieve something great in their life. That are also
plan some important strategies by which employee will improve their skills and abilities.
Legislation
There are some legislation and policies available which are used by the tours and travel
industries. This type of legislation help organization to sustain in the market. With the help of
legal laws organization become more trustworthy and powerful. Expat explore travel is also
followed those legislations i.e.:
 Health and Safety Act 1974: Expat explore travel in UK is followed, health and safety
act. As per this act they are provided all the safety equipment’s for employee’s health and
safety (Law, Chan and Wang, 2018). They are provided their employees leave and
medical support for handling unplanned incidents of employee during working hours.
Expat explore travel also conduct an audit, in which health and safety department people
are coming for visits and test all the safety guards of the organization. Audit people are
also visit the cleanliness, ventilations, lighting, water facilities of the employees.
 National Minimum Wage Act 1998: This law help Expat explore travel to create
minimum wage in the organization. Expat explore travel follow all the criteria in this law
which is design by the government of United Kingdom (Medlik, 2016). They are
providing wages to their employees as per the set criteria of the government. As per law
of UK government minimum wage rate of employees are £8.21. With the help of these
act all the employees of the company will get right amount of salary and there are no
chances of issues and conflicts.
 Food Safety Act 1990: Expat explore travel also follow food safety act in their
organization. Because basically it is tours and travel industry, and they are also provided

food and drinks to their customers. According to this law they are examining that
provided food is healthy and not damage health of company tourist (Vellas, 2016). It may
also include that serving food have good quality and ensure food with good packaging
and labelled. With the help of this act Expat explore travel will know about the standards
of food which is set by the legal authorities of UK.
Laws impact on decision-making
Laws are also impact the decision-making process of company, because these laws are
having to be follow by the organization and it will impact on company and business have to
change decision, process and policies. These laws are:
 Company Law: Company laws are directly and indirectly impacted the decision-making
process of tours and travel industries. Expat explore travel also impacted by this law.
Company law show the organization that how to run a business. But any types of change
in the company law will impact the organization and also the decision-making process of
Expat explore travel. Because as per company law government of UK design new
taxation policies that will be follow by the Expat explore travel and industry have to
change their decision-making process and design new decision as per new company law.
For an example if organization want to expand their business than as per company law,
company have to start new recruiting process because old employee cannot handle that
much work pressure.
 Employment Law: In the employment law various things and act are included. In this
labour law, working hours, minimum wage act etc. are included. Expat explore travel
have to follow this law and provide all the benefits as per the employment act of the
government. For an example the working hours is decides by the United Kingdom
government is not more than 48 hours, and if company took work from their employee
more than 48 hours than it will create legal issue for the organization (Chow and et.al.,
2017). So, company have to design all the rules and polices in their decision-making
process as per government rules and laws. For an example, if government decide that
organization have to give 2 days off their employees, then it is the duty of the
organization that they make aware their employees about new policies of government.

 Contract Law: Contact law also make huge impact on the decision-making process of
Expat explore travel. As per this law company have to follow all the rules and policies
which are included in the contact law. These laws and policies are some time profitable
or not (Martín, Mendoza and Román, 2017). But company sign the contract than
organization have to follow those rules and regulation as per the legal law. For an
example if as per the contact law company go through the bad condition or the loss, then
organization tries to switch but if the organization doing this thing it is against the contact
law.
Implication of regulation, legislation and standards on decision-making
Various types of regulations, legislation and standards are design by the government and
the legal authorities. And it is also very important that every organization follow them. After the
implication of new regulations, legislation and standard, company decision-making process
completely impacted. Because new laws and policies are different from the old policies and
decision process of company. Company also impacted by those laws and policies because it will
take time. And most of the employees of the company can be resisted against these legal policies.
Different type of financial statement and reporting mechanism
As per the annual report of Expat explore travel, the financial conditions of Expat explore
travel is profitable. The total revenue of the company is £7,394 million and it is very much
higher than 2007 profit of Expat explore travel (Sirgy and et.al., 2018). The gross margin rate of
company is 13.5%. That will represent positive report of the company. With the help of this
annual report it is also analyse that organization is continuously growing or not and how
company can expand their business. With the help of this annual report organization also be able
to know that by which sources company earn more profit.
Type of financial statement:
 Income statement: The tourism industry is generating the report that show how much
revenue earned by company in specific time. It can be representing the overall expenses
and cost with revenue generations.
 Cash Flow: it contained information about cash flow statement where useful for industry
to identify enough money on hand to pay its purchase assets and expenses. Sometimes, it
can be divided into different activities: investing, financing and operating within
business.

 Balance Sheet: It is mainly providing the detailed information about tourism firm
liabilities, assets and shareholder equity. In this way, organization can either used or sold
products and services. Sometimes, it including the equipment’s, inventory and physical
lands.
These are considered an important for organization to maintain and handle all type of reports in
the form of documentation. In case if required to identify the total revenue generation in
organization. it helps for improving the overall business performance in proper manner.
Budget:
It is based on the financial plan for defined the specific period of time. it covered the sales
volume, overall costs, revenue and resources required.
Importance and value of Budgeting in organization.
Budgeting is very important for organization and it will help to control performance and
identifying variances. With the help of budgeting organization can estimate their revenues,
expenditures. It is also support business for their strategic objectives. Budgeting also improve
performance of company by motivating their staff by provide them better opportunities for
growth. Budgeting also important to evaluate future needs and demands of the business (Chow
and et.al., 2017). And how effective use of budgeting company can achieve their goal and
targets. Budget is also help business for identifying variances in the organization. With the help
of effective budgeting company can manage all the ups and downs in the account process. With
the help of this company can design effective plan. With the help of this company manage or
control all the activities of the company.
Interpretation
On the bases of annual report of Expat explore travel, it can be interpreted that company
condition is good in the market (Sirgy and et.al., 2018). Expat explore travel is achieving profit
and it is improving from £7,136 million to £7,394 million. Company is continuously growing the
tours and travel sectors and also build a strong image in the market. The current condition of
Expat explore travel company is good and they can easily sustain in the market, but company can
also improve their business, market conditions and profitability by continually growing.
CONCLUSION
From the bases of above study it has been concluded that how much tours and travels are
important in person life and how they are sustain the market. In this it has been concluded

rationale and principle management of revenue that include CRS, revenue management system
etc. and also explain that how company Expat explore travel use revenue management tools. It
has been also explained about HR life cycle for travel manager job role it include recruiting,
orientation steps and also design performance management plan for travel manager job role. Also
in this study has been summarized, different legislation that impact the decision-making process
of Expat explore travel company and also represent that how company, employment and contract
law impact the decision-making process of the company. In the end of this study has been also
concluded the financial report of Expat explore travel, on the bases of this report present the
turnover and profit of company. Also, in this study has been include the importance of budgeting
also interpret all the data that show current situation of the Expat explore travel.

REFERENCES
Books and Journals
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