Travel and Tourism Business Toolkit Assignment Sample

This report is on "laws on decision-making in travel and tourism industry". This report is on British Airways Plc and Iberia, both are working under travel and tourism sector since for so long. It explains the principles and rationale of revenue management for industry, revenue management tools applied by the Airline sector. It clarifies, techniques to overcome issues of staff retention and to resolve negative employee behavior. We will discuss here legislation & ethics in the travel and tourism industry and the impact of various laws on decision-making in the travel and tourism industry Also, we will explain here the Airline sector of the travel and tourism industry apply revenue management tools.

The Travel and Tourism
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
L O 1................................................................................................................................................3
P1) Principles of revenue management........................................................................................3
P2) Airline sector of travel and tourism industry apply revenue management tools...................4
LO 2.................................................................................................................................................5
Covered in PPT............................................................................................................................5
L O 3................................................................................................................................................5
P5) Legislations related with organisation in travel and tourism industry..................................6
P6) Impact of various laws on decision-making in travel and tourism industry.........................6
LO4 .................................................................................................................................................8
P7) Different kinds of financial statements and reporting mechanisms for companies within
travel and tourism industry..........................................................................................................8
P8) Value and importance of budgets for controlling performance of business and identifying
variances......................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES.............................................................................................................................11

INTRODUCTION
Travel and tourism is one of the most progressive and exciting industry in UK, they
provide range of services and products to its customers which help to gain profit. Revenue
management, performance management plan and other toolkit within travel and tourism business
is essential as it help to manage performance effectively (Friedman, 2019). The present report is
based on British Airways Plc and Iberia, both are working under travel and tourism sector since
for so long. It explains principles and rationale of revenue management for industry, revenue
management tools applied by Airline sector. It clarifies, techniques to overcome issues of staff
retention and to resolve negative employee behaviour. Specific legislation that companies in
travel and tourism industry must adhere. It justifies, how organization, contract law and
employment potential effect on travel and tourism sector decision making. Furthermore, various
types of financial statements and reporting mechanisms for firms and importance of budgets for
controlling business performance and identifying differences.
L O 1
P1) Principles of revenue management
Revenue management-
It refers to the analytics used by organisation for predicting the behaviour of customers at
micro market level and it helps the firm to optimize the availability of products or services and
price to maximise the growth of revenue. It helps the firm to offer right product at right time to
right buyer at the right price (Shaw, 2016).
Yield management -
It refers to the strategy based on the understanding the behaviour of customers, predicting
and influencing the customers so that, firm can maximise the sales and revenue from resources
such as airline seats etc. It helps to control the inventory for selling right product or service to the
clients.
Principles of revenue management -
There are various principles related with revenue management in Travel and Tourism
Industry. Such as -
Market segmentation -
For effective revenue management, company will have to target specific market segment.
So that, it can focus on particular target market.

Booking pattern -
Now, company will focus on the pattern of booking of products or services by the
customers.
Forecasting demand -
Travel and tourism firms will have to focus on future demand of its products and services. They
will try to balance past assessment and future analysis of demand in the market for developing an
accurate forecast (Ferreira, Simchi-Levi, D. and Wang, 2018).
Inventory management -
Now, travel and tourism firms will have to manage the price of products or service to achieve
budget goals.
Overbooking -
It refers to techniques related with planning reservation for maximising revenue.
Information System -
Company will have to develop and implement information system like MIS for getting details of
every activity.
P2) Airline sector of travel and tourism industry apply revenue management tools
Airline sector provide air transportation services to cargo and passengers by using aircraft
such as helicopters and air planes. The purpose of airline industry within travel and tourism
sector is to transport customers and its luggage from one point to another safely. Just like any
other industry, they provides the facilities for set prices. Air transportation make people able to
travel long distances in only the fraction of time, it will take by other types of transportation.
They applied revenue management tools to increase and generate profit rather than the other
sectors (Vives, Jacob and Payeras, 2018). Revenue management is application of disciplined
analytics that predict customer behaviour at micro market phase and optimize goods availability
and price to increased revenue growth. Tools of revenue management support to predict clients
demand to optimize price availability and inventory in order to maximize profit. Airline industry
will used different type of tools which is beneficial for business growth as well as financial
performance. Capacity utilisation, discount allocation, late booking strategies and duration
control is the revenue management tools.
Capacity utilization is one of the best tool that help to measure of extent to which
productive ability of airline sector is being used. Industry used this method to calculate net out

put services per month or year times. They measure its business capacity and ability to transport
passengers, it help to measure its revenue per month.
Discount allocation is beneficial for airline sector as it help to generate revenue and
increase profitability and productivity. Industry used this tool in order to attract peoples towards
them that help to maximize profit margin. Passengers receive the discount for purchasing the set
of services or goods. When it occurs total selling prices of tickets may exceed that results in
increases profit. When airline industry provide discount offer to its customers they can garb their
attention and drive them towards purchasing products which is beneficial for business growth
and success within marketplace.
Late booking strategies is one of the another revenue management tools that provide
benefits to airline industry and help to generate more profit rather than before. When person
purchase tickets last minute they need to pay extra that maximize business revenue.
LO 2
Covered in PPT
L O 3
ARTICLE

P5) Legislations related with organisation in travel and tourism industry.
Regulations -
It refers to the rule of order that is prescribed by an authority or by any superior. Regulations
are generally issued by the different departments of federal government. It may be issued by the
various agencies. There are different types of regulations framed by the Government regarding
safety, health or environmental protection (Akan, Ata, B. and Dana Jr, 2015).
Legislation -
Legislation is the type of law that are enacted by any governing body or it may include the
process of forming the law. There are various objectives of the legislation such as to authorize,
to provide funds, to declare or to regulate etc. It is generally proposed by the member of
parliament.
Standards -
It refers to something which is established by the custom, authority etc. that acts as a rule to
measure value, weight etc.
Legislation, standards and regulations are related with each other. Standards are the guidelines
developed to make things work. Regulations are the rules that defines how the laws will be
enforced whereas, legislation are the standards develop by Government.
Government of UK has identified the importance of tourism in development of the economy
therefore, they have introduced various laws and policies. Main aim is to integrate the activities
of all the firms operating in travel and tourism sector.
As travel and tourism industry is growing day by day. There are various parties involved in the
industry such as customers, contractors, suppliers etc. Therefore organizations in Airline
industry have to comply such as -
Package Travel and Tour Regulations, 1992 :
It defines the information that organisations have to provide before, and after customers book
the ticket. Legislation also ensure that companies must set aside enough money to make sure
that in case company goes bust, clients will get their money back.
Aviation Security Act, 1982 -
It is an Act that defines the offences that are against the safety of aircraft, acts of violence,
funding, protection of aircraft etc (Laws, E. and Prideaux, 2017).
P6) Impact of various laws on decision-making in travel and tourism industry.

There are various types of laws that impacts the decision-making of companies operating in
travel and tourism industry. These laws impacts decision making of Airline companies. Such as
company law, contract law etc.
Company law –
Government authorities have developed various acts for regulating organisations in airline
industry. Such as:
Carriage by Air and Road Act, 1979. -
Carrier is responsible for carrying passengers either through airways or roadways. British
Airways is required to follows the regulations. If, passenger dies due to the carelessness of the
carrier, in that case organisation will be responsible for the injury or any type of damages to the
passenger.
Employment law –
Airline companies are required to comply various regulations related with different aspects of
the employees. Such as -
Health and Safety at Work Act, 1974 -
British Airways should ensure the safety, of workers at the workplace. The Act has prescribed
the rules firm have to comply . If it does not comply in that case owner will have to give penalty
(Giliker, 2017).
Contract law -
There are various laws travel and tourism companies are required to follow at the time of
entering into the contract. They are required to provide information regarding their products and
services at the time of offering. Such as -
The Unfair Contract Terms Act, 1977 -
It is an Act passed by the parliament for restricting the legality of certain types of contracts.
British Airways should maintain fair practises at the time of entering into the contract with
other party.
The Consumer Rights Act, 2015 -
The Act provides support to the buyers at the time when they avail products or services of
companies that are operating in travel and tourism industry. British Airways should ensure that
it provides the services with due care. There must be no unfair terms that can affect the clients
(Holt, A.S.J. and Allen, 2015).

Supply of Goods and Services Act, 1982 -
Travel and Tourism firms should ensure that they will provide the services to customers within
reasonable time and adequate level of service must be delivered as promised by the company to
the customer.
LO4
P7) Different kinds of financial statements and reporting mechanisms for companies within
travel and tourism industry
Financial statements is the report prepared by British Airways and finance department to
present current and previous financial performance and position at the point in time. Financial
statements is divided into 3 types which is prepared by junior finance business partner to present
financial performance of business, it it beneficial for further planning (Florou, Morricone and
Pope, 2019). There are following types of financial statements-
Balance sheets-
Balance sheets provides British airways and Iberia detailed information about its business
assets, shareholders equity and liabilities. Organizations balance sheet is set up like general
accounting equations, left side of balance sheet firms finance department list its assets, second
side shareholders equity and liabilities.
Income statements-
Income statements is one of the best financial statement type, that shows how much
revenue companies earned over the particular time period. It also define expenses and costs
associated with earning that revenue. Bottom line of income statements present organizations net
losses or earnings. It tells to both of them how much they lost or earned with specific period.
Cash flow statements-
This type of financial statement report of companies outflows and inflows of cash, it is
essential because businesses needs to have enough cash on hand to pay their purchase assets and
expenses.
Different types of reporting mechanisms-
Telephone helplines-

Reporting mechanisms is the system that enable business and its management to report
current financial statements and issues (Waite, Robinson-Moss and Bergman, 2018). Telephone
helplines help to provide information based on situational analysis.
Online reporting-
Online reporting provide detail about financial performance of companies easily and
faster than the other reporting mechanisms.
P8) Value and importance of budgets for controlling performance of business and identifying
variances
Budgets is the estimate of expenditure and income for set period of time, budgeting is
very important for controlling business performance. It permits company to create the spending
plan for money, it assure that they always have enough balance for things which they need and
that is essential for business growth (Siddiqui and Bisaria, 2018 ). With the help of budgeting,
finance department allocate budget to different departments in order to run their functions and
activities effectively. Other departments need to work under allocate budget which help to
control extra expansion and expenses. It contribute to save money and control performance of
organization effectively, budgeting is valuable and essential for business growth and success.
British Airlines budgeting for managing their business performance, with the help of
budgeting they earn 12,226 Million in 2017. As compare to British Airline, Iberia earn less than
11 million.
CONCLUSION
From above, it has been concluded that revenue management for travel and tourism
sector is very essential, it associated with principles which need to follow by industry in order to
manage their revenue and maximize than before. Airline sector of travel and tourism industry
used revenue management tools which is beneficial for increasing profit and help to generate
revenues more and more. Capacity utilization, Discount allocation and Late booking strategies is
considered as revenue management tools that help organization to maximize and generate profit
and revenues. Training, development planning and other things is required for professional and
personal career growth. With the help of planning in context of development and training session
human resource manager will be able to retain employee effectively. Furthermore, Supply of
Goods and Services Act, 1982, The Unfair Contract Terms Act, 1977, The Consumer Rights Act,
2015 and Contract law are the legislation that companies need to adhere because it is beneficial

for business growth. Income statements, balance sheet and other types of financial statements
help British Airway and Iberia to know about their current financial performance within
marketplace. Budgeting is essential and valuable for business as it help to control business
performance and increase financial performance.

REFERENCES
Books and Journals -
Friedman, B.A., 2019. Hospitality, Tourism, and Events Industry Competency Model: Human
Resource Management Implications. In Strategic Innovative Marketing and
Tourism(pp. 49-56). Springer, Cham.
Akan, M., Ata, B. and Dana Jr, J.D., 2015. Revenue management by sequential
screening. Journal of Economic Theory. 159. pp.728-774.
Bandalouski, A.M., Kovalyov, M.Y., and Tarim, S.A., 2018. An overview of revenue
management and dynamic pricing models in hotel business. RAIRO-Operations
Research. 52(1). pp.119-141.
Camilleri, M.A., 2018. The integrated reporting of financial, social and sustainability capitals: a
critical review and appraisal.
Ferreira, K.J., Simchi-Levi, D. and Wang, H., 2018. Online network revenue management using
thompson sampling. Operations research. 66(6). pp.1586-1602.
Florou, A., Morricone, S. and Pope, P.F., 2019. Proactive Financial Reporting Enforcement:
Audit Fees and Financial Reporting Quality Effects. Available at SSRN 2878891.
Giliker, P., 2017. The Consumer Rights Act 2015–a bastion of European consumer
rights?. Legal Studies. 37(1). pp.78-102.
Holt, A.S.J. and Allen, J., 2015. Principles of health and safety at work. Routledge.
Kimes, S.E. and Ho, J., 2018. Revenue management in luxury hotels. Journal of Revenue and
Pricing Management. 17(4). pp.291-295.
Laws, E. and Prideaux, B.R., 2017. The significance of crisis communication in the aftermath of
9/11: A national investigation of how tourism managers have re-tooled their
promotional campaigns. In Tourism Crises (pp. 89-102). Routledge.
Ngcobo, T., Martins, A. and Martins, I., 2019. Talent Management: Retaining Distinctive
Human Capital Sustainably. In Forecasting and Managing Risk in the Health and Safety
Sectors (pp. 145-174). IGI Global.
Shaw, S., 2016. Airline marketing and management. Routledge.
Siddiqui, N.N. and Bisaria, G., 2018. Innovative Techniques of Motivation for Employee
Retention in Aviation Industry. ANVESHAK-International Journal of Management.
7(1). pp.136-151.
Vasantham, T. and Swarnalatha, C., 2018. Strategies Implemented to Retain Employees. IJAME.
Vives, A., Jacob, M. and Payeras, M., 2018. Revenue management and price optimization
techniques in the hotel sector: A critical literature review. Tourism Economics. 24(6).
pp.720-752.
Waite, M.M., Robinson-Moss, T.N., Kopelic, S.M. and Bergman, S., 2018. Training Employees
to Stay: T&D in Retaining Talent.
Yeh, C.M., 2019. The influence of foreign institutional investors, institutional directors, and the
share pledge ratio of directors on financial performance of tourism firms. Tourism
Economics, p.1354816619835613.

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