Rational and Principles of Revenue Management in Travel and Tourism Industry

TRAVEL AND TOURISM
BUISNESS TOOLKIT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Discussion on rational and principle of revenue management for the travel and tourism
industry...................................................................................................................................1
P2 Investigation on the specific sector of the travel and tourism that applies to revenue
management tools to maximise profit....................................................................................3
LO 2 ................................................................................................................................................4
P3 Review the different stages of HR life cycle and applied it to specific travel and tourism
role..........................................................................................................................................4
P4 Develop performance management plan for specific travel and tourism job role and apply
techniques to resolve negative behaviour. .............................................................................5
LO 3 ................................................................................................................................................6
P5 Define the legislation for the travel and tourism industry.................................................6
P6 Explain how company employment and contract law has potential impact on business
decision making......................................................................................................................7
LO 4.................................................................................................................................................7
P7 Description on different type of financial statement and reporting mechanism for
enterprise................................................................................................................................7
P8 Define the significance and value of budgets for controlling business performance. ......8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Travel and Tourism plays vital role in economic development of the country. Henceforth,
tourist spends more on hotels, restaurants, sightseeing, museums and local stores (Craddock,
2018). Tourism can be of several types such as domestic tourist, inbound tourism etc. Tourism
termed out as subset of different products and services that are offered to people.
The present study is based on business activities of British Airways, this is flag carrier
airline of United Kingdom that headquartered in waterside. It is the second largest airline within
the United Kingdom.
Furthermore, study will focus on activities as the key principles of revenue management
for the travel and tourism, this report also aids to manage the budgets and aids to maintain
statistical and financial records. Moreover, assignment will assess about managing the human
resource life cycle within context of HR strategy.
LO 1
P1 Discussion on rational and principle of revenue management for the travel and tourism
industry.
Travel and tourism industry plays the crucial role and it is impacting the economic
development of the country. There are certain characterstics about that industry which make
crucoal and exciting for companies to undertake planning a marketing and social media strategy.
These are defined in following context as are-
 Perishability- It is defined as one of the most crucial characterstics of tourism industry.
Hence, hotel rooms and cable car seats rooms cannot be consumered for future sales.
Uncertaining in the demand of customer is impacting this industry in huge context.
 Inconsistency- Commodities of the tourism industry is always different. Thus, rational
commodities attributes likr price, additional services and nights of stay can all only be
compred to minor changes.
 Investment and immobility-The hotel and orher commodities is usually a big lockup in
the assets.
Principle of revenue management-
Revenue management -
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It is known as method of collecting and analyzing financial data that helps to predicting
the consumer behaviour that optimize the service offering and price to maximise the revenue
growth. Additionally, the main goal is to selling the right product to the right consumer at the
right time. This results that organisation is able to accomplish its financial growth and aims and
goals of the firm can be accomplished in appropriate manner (Gibson and O’Rawe, 2018). It is
termed out as the application that helps to predict the consumer behaviour at the micro market
levels. This is generally characterized as tool that helps to anticipate the demand and pricing of
the enterprise to achieve the best possible financial results. It is defined as the critical part of the
enterprise that helps to accurately and efficiently realising the profitability and productivity of
the enterprise.
Yield management – This is defined as price strategy that is commonly utilised in businesses
in hospitality, airline and travel related fields. In addition to it, the main object of Yield
management needs to use the data based tactics and plan of action in terms to enhance the
revenue. In addition to it, British airways activities mainly based on several rates, strategies and
margin to sale their commodities within the market. Additionally, British airways mainly put
consideration on basis of customer and market through that needs and demand in the effective
mode.
Principle and rational of revenue management-
It is defined as one of the effective tool for planing action and is applied by hotel
management to increase profits. This is defined as one of significant tool that by industry that
assist to earn more profitability for business. In BA the revenue model needs to implement by the
management that defined in the following manner as are-
Reduction in cost- Booking trend and components of ticket is mostly dependent on number of
aspect that mainly relat with age, weather conditions and this also defines the economy of nation.
Hence, it can be one of the way for the British airway for revenue management. This is easy for
the enterprise to sale their commodities at the best rate. In addition to it, it is also assistive in
terms to reduction in the cost of the service by utilising all the resource in exact mode (Camilleri,
2018).
Attracting guest- There are number of organisations that are providing the services at the large
scale. It is crucial for the travel and tourist firms to fulfil the maximum seats and this also assist
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