Travel and Tourism Business Toolkit - Titan Travels Assignment Sample

The Travel and Tourism
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
LEARNING OBJECTIVE 1............................................................................................................1
P1. Rationale and principles of revenue management for the travel and tourism industry.........1
P2. Application of revenue management tools to generate and maximise profit........................2
LEARNING OBJECTIVE 2............................................................................................................3
P3. Different stages of HR life cycle and their importance for retaining and developing talent.3
P4. Performance management plan..............................................................................................5
LEARNING OBJECTIVE 3............................................................................................................6
P5. Specific legislation that organisations in the travel and tourism industry.............................6
P6. Employment and contract law has a potential impact on business decision-making in the
travel and tourism industry..........................................................................................................7
LEARNING OBJECTIVE 4............................................................................................................8
P7. Different types of financial statements and reporting mechanism for organisation within
the travel and tourism industry....................................................................................................8
P8. Importance and value of budgets for controlling business performance and identifying
variances......................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Travel and tourism industry is considered as one of the growing business across the world
(Cohen, 2017). In reference to tourism, it includes series or activities or services experienced by
the travellers at the travelling and having fun. Such industry plays an important role as it helps in
providing employment opportunities, generating revenues and developing economic
infrastructure. Present report is based on Titan Travels which began in 1978 for providing
extraordinary travelling experiences to its clients (Titan Travels, 2019). It has its headquarters
located at Cross Oak Lane, UK. It is one of the holiday escorted company. The entity has been
honoured with British Travel Awards.
This report includes discussion on rationale and principles of revenue management as
well as application of revenue management tools to generate and maximise profit. It further
includes, different stages of the HR life cycle, and their importance for retaining and developing
talent, a performance management plan and various techniques to resolve negative behaviour and
to overcome issues of staff retention. In addition, specific legislation, potential impact of
employment and contract law on business decision-making in the travel and tourism industry.
Lastly, different types of financial statements and reporting mechanism as well as the importance
and value of budgets for controlling business performance and identifying variances are covered
in this report.
LEARNING OBJECTIVE 1
P1. Rationale and principles of revenue management for the travel and tourism industry
Revenue management: It is a management approach to optimise the revenues through
controlling costs to provide benefits to the business. It helps in forecasting the consumers
demand for optimization of available stocks as well as prices for the purpose of maximising
growth of the revenue. it include evaluation of average daily rate, standard rate as well as
availability of products or services for increasing revenues. In relation to Titan Tours, such
concept is related to planning the procedures for optimizing and managing human resources for
the time period of higher demand as well as lower demands. It is useful for avoiding unnecessary
expenses and focus on improving food & beverages, accommodation, entertainment, services
and more. Using such technique, the managers of selected business frames plans which helps in
attracting maximum customers and guests. Proper adoption of revenue management strategies
1

helps the industry in improving branding and occupancy of different hotel managers for the
purpose of maximising revenues.
Rationale and Principle of Revenue Management
Rationale of revenue management are the followings:
 Revenue management system are useful in decreasing cost of unnecessary expenses.
 Revenue management system are helpful in training, improving, designing, updating and
boosting the performances of the workforce.
 Revenue management helps in predicting consumer behaviour for optimising the
availability of new product or service as per the prices and selling them to the right
consumer at right time for maximising revenue growth which benefits the business to
perform its operations effectively (Colomb and Novy, 2016).
Principles of revenue management in travel and tourism industry are the following:
 Overbooking: This principle is related to accepting more reservations than the capacity.
In relation to respective industry, it is a situation where the supply of rooms at certain
time for reservation exceeds the availability for sale at same time period. Various
consumers cancel the rooms at some time period. The motives of such principle is to
boost the level of overbooking for the purpose of enhancing revenues as well as reducing
risk of service cancellation.
 Market segmentation: Under such principle, the clients are sub divided into groups
according to the homogeneous behaviours or characteristics as per the needs, demands of
them. It helps in understanding the perception of clients for the objective of formulating
and providing suitable products and services to each segment. The segmentation helps the
Titan tours to segments its clients and provide services accordingly which leads to
maximising sales and profits.
P2. Application of revenue management tools to generate and maximise profit
Revenue management tools: These are tools and techniques which helps in predicting
demand of customers towards the products or services, optimising price availability as well as
maximising the commission efficiency. In relation to travel and tourism sector, various tools and
their applicability for generating maximum profits are the followings:
 Capacity utilization tool: In any organisation, certain proportion of the fixed capacities
needed to be utilized in efficient and appropriate manner. This tool helps the business to
2

monitor the capacity utilisation through proper investigation. The managers to Titan
Tours plans and applies the procedures in such a manner which leads to use the full
potentiality of the available installed productive capacity (Dickinger, Lalicic, and
Mazanec, 2017). The managers properly evaluate the rooms reservation capacity and
accordingly offer facilities to its clients. By applying such tool the business can
successfully generate maximum profits. For example, Titan Travels have the capacity to
provide 536 rooms then it is very essential to provide them to its clients for effectively
utilizing its capacity. By applying such tool the managers can evaluate their capacities for
providing room services to attracted clients.
 Discount allocation tool: such tool helps the business to offer various services through
attractive discounting schemes to numerous clients. For instance, the selected business
applies such tool to offer discounts on bookings through online, advance booking, age
based discounts and many more to its potential, loyal clients. This tool helps the
management to attract new segment of customers from the distinct and wide geographical
locations. By attracting and providing services to wide geographical location clients, it
benefits to generate and maximise profit of the organisation.
LEARNING OBJECTIVE 2
P3. Different stages of HR life cycle and their importance for retaining and developing talent
Human resource are the important aspects for managing relationships at work place. In
the life cycle of human resources there are set of activities as well as stages involved. Each stage
includes benefits, challenges and opportunities (Tech Target, 2019). The structure of Human
Resource life cycle at Titan Travels along with the importance to retaining and developing talent
is as follows:
 Stage 1: Recruitment: It is a process of searching the right candidate and motivating them
to apply for the vacant position in the business. This stage helps in enhancing growth,
turnover, efficiency, and productivity within the workforce as well as company for the
purpose of retaining as well as developing available talent. In context of Titan Travels, it
is important to frame strategies and plans for recruiting skilled and efficient personnel for
escorting its clients. For such purpose, the entity is searching a candidate for the role of
3

Tour Manager who have experience in Hospitality industry as well as command to frame
marketing strategies for offering the services to distinct clients.
 Stage 2: Education: Such process starts when the hired candidate performs the operations
and tasks for the selected job profile. It is a process to appropriately educate the employee
by clarifying roles, responsibilities and expectations. The Titan Tours conducts training
and development programs for the purpose of enhancing knowledge, skills of the new
and existing workforce. Skills, values and knowledge of Tour manager are developed for
increasing the future efficiencies of the personnels which helps in retaining as well as
developing talent.
 Stage 3: Motivation: For increasing the turnover rate, it is very important to motivate the
staff to work according to the plans and policies for attaining the results. In context to
this, Titan Travels of one of the leading company in travel and tourism industry which
time to time motivates its employees to build long term relationships. As they offer
various services, it is important for the management to build effective, trusted, loyal
relationships with the workforce in order to retain and develop talent at work place.
 Stage 4: Evaluation: it is necessary to measure and review the performances of each
individual at the firm (Franzoni, 2015). Due to the intense competition, standards are set.
The managers properly evaluate and review the performances according to the standards
by providing feedbacks to set the benchmarks. This helps in reducing the variances and
focusing on the accomplishment of objectives for enhancing performance level.
Managers evaluate the performance of each employee and review performances in order
to retain and develop talent.
 Stage 5: Celebration: It is essential to reenergizing the workforce and appreciating them
for the work. The executives to Tour Travels adopts various practices and strategies for
appreciating the hard work of the employees. The practices includes extra payment,
rewards, free stay at hotel and many more. This helps in empowering the roles and
responsibilities for retaining and developing people at work place which helps in
retaining and developing talent.
Thus, all the stages of HR life cycle helps in enhancing values among employees which
leads to provide advantage to the company for retaining and developing talent to accomplish the
goals of the organisation.
4

The job role in tour and tourism sector of tourism officer includes supervising staff, managing
budgets, making presentations, preparing tourist information, undertaking administration
functions, maintaining financial records, preparing business plans and many more.
P4. Performance management plan
Performance management plan is a framework which includes various steps for analysing
the strengths and weaknesses of an employee for managing the performance towards efficiency
and results. The top level management is responsible for formulating plans to supervise and
guide the workforce to work in appropriate direction for the betterment of the company. For
such purpose, the managers of titan Travels have successfully framed performance management
plan which is as follows:
 Assess current performance management process: under this, the company employer
determines the current strengths and weaknesses in the organisational structure. They also
analyses current management system for setting the targets for the purpose of attaining
objectives effectively.
 Setting Goals and objectives: Once the performances are evaluated, then the next
function is to set goals and objectives by building teams in the selected firm. The
objectives are shared within the organisation to maximise the employees performances in
effective manner (Kasemsap, 2018). This step is used for setting the standards to
enhancing performances.
 Creating action plan: when the goals and objective s are set and shared, the action plan
is developed for enhancing the scope to increase performances. The managers of
respective entity segregates roles, responsibilities to fulfil the organisational objectives. It
creates transparency among the employer and employee to perform the work with
connections
 Tracking: It is an important step to evaluate the effectiveness of the performance
management plan. It helps in monitoring the performances of each employee at work
place for finding any deviation and assisting them at the accurate time period for
understanding the problems. The executives monitors the performances of each employee
by understanding the reports and supervises tasks for providing the positive directions
and achieving objectives effectively.
5

All these steps are helpful for the Titan Travels to resolve the problems of negative
behaviour and staff retention in positive manner. It helps in engaging all the personnels of the
organisation including waiters and waitresses. By appreciating the work and giving them rewards
benefits the organisation to calm the negative behaviour. Team work benefits by stimulating
growth and reduction of pressure to perform work which leads to retain the staff members for
long time period.
LEARNING OBJECTIVE 3
P5. Specific legislation that organisations in the travel and tourism industry
It is mandatory for all businesses to perform their operations by considering the
regulatory frameworks. Different governments in different countries have stated various
legislations. The laws are stated to safeguard the interest of people living in the society. As Titan
Travels is successful in building its brand image across the world, it is mandatory for it adhere
the legislations for effectively performing the activities in the prescribed industry. The
legislations are the following:
 The Tourism Act, 2011: This law was passed for the development, marketing,
management and regulation of the activities related to the sustainable tourism related
services. It is an important legislation as it outline the roles of the companies performing
in tourism sector (Liu and Pennington-Gray, 2015). Such legislation helps Titan travels to
operation its services in the international market using appropriate legal programs.
 Modern slavery Act, 2015: This act was passed to protect the employees at work from
exploitation. In context to Titan Travels, all the rules and regulations are appropriately
followed such as avoiding child labour, malpractices and proving liable working hours to
male and female employees according the their capability. This benefits by enhancing
image in the market and building loyal, trusted relationships with work force.
 Development of Tourism Act, 1969: This act was enforced in order to promote or
develop the tourism industry by providing financial assistance, provisions related to new
hotels, improvements in current hotels, registrations of hotels and many more. Such
legislation is adopted by selected hotel in order to promote as well as develop the tourism
industry.
6

P6. Employment and contract law has a potential impact on business decision-making in the
travel and tourism industry
It is very essential for any business to perform the operations in coordinated manner. For
such purpose various legislations are been governed and passed by the governments to restrict
the unethical work performance which harms the society (Urry, 2016). Different legislations
impact in different manner. Various legislations have direct impact on the staff members as well
as organisational efficiency. Travel and tourism sector has to follow various regulations and laws
as per the services in different countries.
Company law is the body of legislations which governs relations, conduct and rights of
an individual, company, business. It involves legal practices related to various matters which
encompasses governance, funding, formation along with death of any institution. Company law
have much impact on decision making of selected business as various decisions related to
funding, governance are taken by considering such laws.
Employment laws are related to the rules which regulate effective relationship between
manager and personnel of the organisation. It states that it is important for an employer to
understand the rights of each individual at work place. There are various legislations under such
law which protect the employees from discrimination, unfair practices, unsafe working
conditions. These laws ensures that the organisation should engage the employees in decision
making and should plan the objectives by considering their interests also. Each employee must
be paid as per their experiences. Such legislations have direct impact on decision making in the
respective industry (Sharpley, 2002).
Contract law is related to enforcing agreements. It includes legal documents which
governs the agreements. It is considered as the secured manner to protect the business from any
deceitful event. But it also impacts on the businesses. All the organisations performs activities to
provide the products and services to the end targeted customer by rendering their potential
services. Each trade activity includes a contract as a legal evident. If any firm performs illegal
attempt then it leads to have the direct impact on the revenues. Any individual can file a case
against the illegal attempt by the organisation which ultimately impact on the business decision
making.
7

Thus, employment law and contract law includes various regulations which leads to have
potential impact on decision making of Titan Travels in the travel and tourism industry.
LEARNING OBJECTIVE 4
P7. Different types of financial statements and reporting mechanism for organisation within the
travel and tourism industry
Financial statements are the statements prepared by the finance department of any
institution. These are the statements which are helpful in providing the performance, financial
activities, earning potentiality and position in the domestic or international market. These are
used by the external as well as internal stakeholders to take various decisions (Sigala and
Gretzel, 2017). They plays an important role in planning strategies, estimating profits as well as
reasons of failures, decision making in the company. The users of such statements are
management, lenders, creditors and many more. Following are the financial statements as well as
reporting mechanisms prepared by the managers of Titan Travels:
 Income statements: This statement is used for providing information related to financial
performance in an accounting period. It starts with sales then subtracts all the expenses
incurred to arrive at the decision of profit or loss. The managers of selected business
considers it important financial statement as it helps in describing performance.
 Balance sheet: This statement provides relevant and appropriate information related to
the inflow and outflow of cash in the reporting period. It is used by Titan Travels to state
the financial position till the reporting date. It includes the classification of relevant
transactions into assets, liabilities and equity sides respectively. Other financial
statements are used for preparing the balance sheet and calculating ratios. A strong
balance sheet utilises optimum working capital level for funding business operations in
order to derive revenues as well as profits.
 Statement of cash flows: This statement provides information related to the changes in
the equity during the financial period. It includes activities such as operating, investing
and financing activities. It is not important for the internal managers of Titan Travels but
plays necessary role for the external stakeholders. It is divided into some sections where
all operations related to business activities are included. It further involves cash spent and
8

received on particular assets. It also includes overview of cash utilised in activities related
to financing.
P8. Importance and value of budgets for controlling business performance and identifying
variances
Budgets are the plans which are prepared for the future by analysing the past as well as
current situations pertaining in the business. It is the basis for the success of all companies. It
helps in planning activities and controlling the available funds. Effective budget benefits a firm
to carry out its day to day operations without any hindrances of issues (Sun, Ryan and Pan,
2015). The importance of budgets in the Titan Travels for controlling business performances and
identifying values are the followings:
 Budgets are important for controlling the available financial resources of the
organisation.
 They benefits the managers of Titan Travels to evaluate the performances as per the
standards set.
 It is an important aspect in the chosen business as helps in preparing of any uncertain
turmoil and to achieve the growth in continuous manner.
 The properly structured budget helps in providing guidances and directions for
supporting the operations.
 Due to the shortage of availability of cash, budgets helps in allocation of cash in different
activities for the purpose of keeping away the entity from any debts.
CONCLUSION
From the above mentioned report it can be concluded that travel and tourism business
toolkit is required in any organisation for performing the business operations effectively. In this
report,the application of revenue management tools to generate and maximise profit. It further
includes, different stages of the HR life cycle and its importance for retaining and developing
talent. A performance management plan and various techniques to resolve negative behaviour
and to overcome issues of staff retention. In addition, specific legislation in relation with
potential impact of employment and contract law on business decision-making in the travel and
tourism industry. Lastly, different types of financial statements and reporting mechanism as well
9

as the importance and value of budgets for controlling business performance and identifying
variances to accomplish the goals in effective manner.
10

REFERENCES
Books and Journals:
Cohen, S., 2017. Decline, renewal and the city in popular music culture: Beyond the Beatles.
Routledge.
Colomb, C. and Novy, J., 2016. Protest and resistance in the tourist city. Routledge.
Dickinger, A., Lalicic, L. and Mazanec, J., 2017. Exploring the generalizability of discriminant
word items and latent topics in online tourist reviews. International Journal of
Contemporary Hospitality Management. 29(2). pp.803-816.
Franzoni, S., 2015. Measuring the sustainability performance of the tourism sector. Tourism
Management Perspectives. 16. pp.22-27.
Kasemsap, K., 2018. Mastering social media in the modern business world. In Social Media
Marketing: Breakthroughs in Research and Practice (pp. 111-137). IGI Global.
Liu, B. and Pennington-Gray, L., 2015. Bed bugs bite the hospitality industry? A framing
analysis of bed bug news coverage. Tourism Management. 48. pp.33-42.
Sharpley, R.,2002. The tourism business: An introduction. Routledge.
Sigala, M. and Gretzel, U. eds., 2017. Advances in social media for travel, tourism and
hospitality: New perspectives, practice and cases. Routledge.
Sun, M., Ryan, C. and Pan, S., 2015. Using Chinese travel blogs to examine perceived
destination image: The case of New Zealand. Journal of Travel Research. 54(4).
pp.543-555.
Urry, J., 2016. Mobilities: new perspectives on transport and society. Routledge.
Online:
Titan Travels. 2019. [Online]. Available through<https://www.titantravel.co.uk/>
Tech Target. 2019. [Online]. Available through:
<https://searchhrsoftware.techtarget.com/definition/employee-life-cycle>
11