The Travel and Tourism Business Toolkit - Assignment (Solution)
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Added on 2021-01-13
The Travel and Tourism Business Toolkit - Assignment (Solution)
Added on 2021-01-13
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TRAVEL AND TOURISMBUSINESS TOOLKIT
Table of ContentsINTRODUCTION...........................................................................................................................1LO1..................................................................................................................................................1P1. Discuss the rationale and principles of revenue management for the travel and tourismindustry ..................................................................................................................................1P2 Application of revenue management tools on specific sector of travel and tourism sectorfor maximising profit..............................................................................................................2LO 2.................................................................................................................................................4LO 3...............................................................................................................................................5P.6 Company, Employment and contract law has a potential impact on business decision-making in TUI........................................................................................................................6LO4..................................................................................................................................................7P7 The different types of financial statements and reporting mechanism for organisation withinthe travel and tourism industry........................................................................................................7P.8 Importance of budget.......................................................................................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONThis study will explain about Travel and tourism business toolkit . Tourism industry is one of thefastest growing sector in the world. Tourism toolkit provide the tour operators with informationregarding development and promotion of tourism products. TUI group of company will be takenas a part of this assignment. TUI is a UK base company dealing in passenger transport, travelagency, Accommodation. This assignment will explain about various key principles of revenuemanagement for the travel and tourism sector. It will also explain about the HR life cycle incontext of HR strategy. Furthermore, this learning will provide about legal and ethicalconsideration on tourism business. Moreover, it will describe about budget management andmaintaining statistical and financial record.LO1P1. Discuss the rationale and principles of revenue management for the travel and tourismindustry Revenue management- revenue management is related to selling the right product to the rightcustomer on the right time on the right distribution. It helps to predict the customers demand tothe best use of the inventory and maximize the growth of revenue. Revenue management is longterms strategy, it can sell product in low rates even in high demand period.Rationale and PrinciplesRevenue management is use in travel and tourist industry to generate more revenue itsimplemented to achieve a goal of the industry (Edgell, 2015). The main reason of managingrevenues is to forecast demand and find out actual figures in respect to industry. Its benefits fromcollecting the demand data from past, present and the demand which yet to come. Its help set theright price of product to the right customer on the right time, demand forecast is shows theestimated of expected customer in specific period. Forecasting helps different department to plantheir goals and budget, planning provides Sales & Marketing team to make a strategy whichhelps business throughout the year. Rationale for revenue management is to set the budget, future1
rates, future pace and brand reputation. It helps to set raise or lower rates according to thedemand. Market segmentation is a component of revenue management its help to find out the differentgroup of consumers with different needs, behaviour and allow to matching with their needs.Pricing and inventory management are key principles of revenue management, its main aim is todetermine the price of a specific available product. Its implement on the overbooking sometimesit’s necessary to sell the more product than the availability its protect to decrease the revenue dueto unexpected cancellation. Revenue management maintain the inventory of all types of productavailable at all times as well its help in pricing. Historical information guide to pricing andinventory management it's also depend on current trend, customers preference etc.P2 Application of revenue management tools on specific sector of travel and tourism sector formaximising profitRevenue management is used to maximise profit of the organisation by offeringcustomers with right price of product. It provides assistance in determining the demand of theproduct in market. There are various tools of revenue management through which TUI canincrease its profitability level. Following are the tools which apply in transportation sector ofTUI:-Pricing :- pricing is the important tool of revenue management. This tool providecompany with different pricing strategies in order to maximise profitability. Price of theproduct is decided on the basis of product demand, location etc. transportation sector oftourism adopt this tool to increase their profit level. This tool support the sector inachieving dynamic pricing (Sönmez, Apostolopoulos and Tarlow, 2013). It assists inmanaging the traffic flow and also attract more passengers for journey when optimumpricing system is maintained.Inventory :- This tool is used to attract more revenue for firm. Inventory is contoled byapplying revenue management tools . This tool focuses on optimum usage of resources inorder to allocate capacity. Tourism sector provide various discounted packages in orderto attract more customers for travelling. Transportation sector of TUI in order to use itsinventory in optimum way maintain proper facilities of buses, airline, cars etc. This tool2
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