Travel and Tourism Business Toolkit Assignment Sample
Added on 2021-02-19
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The Travel and TourismBusiness Toolkit
Table of ContentsINTRODUCTION...........................................................................................................................3L O 1................................................................................................................................................3P1) Principles of revenue management........................................................................................3P2) Airline sector of travel and tourism industry apply revenue management tools...................4LO 2.................................................................................................................................................5Covered in PPT............................................................................................................................5L O 3................................................................................................................................................5P5) Legislations related with organisation in travel and tourism industry..................................6P6) Impact of various laws on decision-making in travel and tourism industry.........................6LO4 .................................................................................................................................................8P7) Different kinds of financial statements and reporting mechanisms for companies withintravel and tourism industry..........................................................................................................8P8) Value and importance of budgets for controlling performance of business and identifyingvariances......................................................................................................................................9CONCLUSION................................................................................................................................9REFERENCES.............................................................................................................................11
INTRODUCTIONTravel and tourism is one of the most progressive and exciting industry in UK, theyprovide range of services and products to its customers which help to gain profit. Revenuemanagement, performance management plan and other toolkit within travel and tourism businessis essential as it help to manage performance effectively (Friedman, 2019). The present report isbased on British Airways Plc and Iberia, both are working under travel and tourism sector sincefor so long. It explains principles and rationale of revenue management for industry, revenuemanagement tools applied by Airline sector. It clarifies, techniques to overcome issues of staffretention and to resolve negative employee behaviour. Specific legislation that companies intravel and tourism industry must adhere. It justifies, how organization, contract law andemployment potential effect on travel and tourism sector decision making. Furthermore, varioustypes of financial statements and reporting mechanisms for firms and importance of budgets forcontrolling business performance and identifying differences.L O 1P1) Principles of revenue managementRevenuemanagement-It refers to the analytics used by organisation for predicting the behaviour of customers atmicro market level and it helps the firm to optimize the availability of products or services andprice to maximise the growth of revenue. It helps the firm to offer right product at right time toright buyer at the right price (Shaw, 2016).Yield management -It refers to the strategy based on the understanding the behaviour of customers, predictingand influencing the customers so that, firm can maximise the sales and revenue from resourcessuch as airline seats etc. It helps to control the inventory for selling right product or service to theclients. Principles of revenue management - There are various principles related with revenue management in Travel and TourismIndustry. 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 thecustomers.Forecasting demand -Travel and tourism firms will have to focus on future demand of its products and services. Theywill try to balance past assessment and future analysis of demand in the market for developing anaccurate 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 achievebudget 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 ofevery activity.P2) Airline sector of travel and tourism industry apply revenue management toolsAirline sector provide air transportation services to cargo and passengers by using aircraftsuch as helicopters and air planes. The purpose of airline industry within travel and tourismsector is to transport customers and its luggage from one point to another safely. Just like anyother industry, they provides the facilities for set prices. Air transportation make people able totravel 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 othersectors (Vives, Jacob and Payeras, 2018). Revenue management is application of disciplinedanalytics that predict customer behaviour at micro market phase and optimize goods availabilityand price to increased revenue growth. Tools of revenue management support to predict clientsdemand to optimize price availability and inventory in order to maximize profit. Airline industrywill used different type of tools which is beneficial for business growth as well as financialperformance. Capacity utilisation, discount allocation, late booking strategies and durationcontrol is the revenue management tools. Capacity utilization is one of the best tool that help to measure of extent to whichproductive ability of airline sector is being used. Industry used this method to calculate net out
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