Travel and Tourism Business Toolkit

Travel and Tourism Business
Toolkit

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Learning outcome 1.........................................................................................................................1
P1 Presenting the rationale and principles of revenue management for the travel and tourism
industry...................................................................................................................................1
P2 Describing how a specific sector of the travel and tourism industry applies revenue
management tools to generate and maximise profit...............................................................2
Learning outcome 2.........................................................................................................................3
P3 Reviewing different stages of the HR life cycle applied in Manager, and their importance
for retaining and developing talent.........................................................................................3
P4 Develop performance management plan for a specific travel and tourism job role.........5
Learning outcome 3.........................................................................................................................6
P5 Describing legislation that Thomas Cook have to adhere to.............................................7
P6 Describing how company, employment and contract law has a potential impact on
business decision-making.......................................................................................................7
Learning outcome 4.........................................................................................................................8
P7 Explore the different types of financial statements and reporting mechanism for a firm. 8
P8 Presenting the importance and value of budgets for controlling business performance and
identifying variances............................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Travel and tourism can be defines as the practice of visiting or traveling to various tourist
destinations within local and foreign countries. It will includes various other facilities like
accommodation, food and beverages, transportation etc. For this report is Thomas Cook which is
one of the top company in UK in travel and tourism industry. This report will examine key
principles of revenue management in an industry and also assessing how to manage HR life
cycle in the context of HR strategy. Report will illustrate the potential impact of the legal and
ethical considerations on Thomas Cook and then it explain how to manage budgets and maintain
statistical and financial records.
MAIN BODY
Learning outcome 1
P1 Presenting the rationale and principles of revenue management for the travel and tourism
industry
Revenue Management of a tourism industry is all about generating high revenue and
also increases the profit as well for a company and even it is all about selling the right product to
right person at right time in order to increases the revenue. It is also known as yield management.
Rationale: It is one of the importance concept for travel and tourism industry because it
allows the owners of travel company to anticipated demand and optimize the availability and
pricing so that it helps to achieve the best financial results (Middleton and et.al., 2019). Apart
from this, in revenue management, the online travel with such huge competition and volatile
demand, by developing, implementing the complex pricing and inventory management action,
the companies in travel and tourism can easily compete and also maximizes revenue as well.
Principles: various principles are been undertaken by the organisation in order to manage
and monitor their revenue within a travel and tourism enterprise. Some major principles which
can improve the profitability of the organisation are:
 Predicting customer behavior: based on the behavior and perception of the customer,
the travel and tourism enterprise can develop suitable packages and thus improves the
revenue generation and sales (Sharpley, 2011).
 Optimizing product: Travel and tourism enterprises can optimize and mold their
products as per the needs and demands of their buyers. This will help in increasing their
satisfaction level and revenue management.
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 Forecasting demands: looking at the tourist seasons and ongoing market trends, travel
and tourism firms can predict the upcoming number of customers and thus will lead to
enhance the handling of productivity achieved by the organisation.
 Planning of resources: Travel and tourism enterprises will effectively plan the resources
which will help in carrying out the revenue planning measures of the organization.
P2 Describing how a specific sector of the travel and tourism industry applies revenue
management tools to generate and maximise profit
Travel and tourism sector is one of the high profit earning sector in Hospitality industry
and it also uses different revenue management tools in their working areas for different
company. Some of them are as follows:
 Data Analytic: data is the key foundation to run business operations in well manner. It
has become a trend in tourism industry and by analyzing the historical data on
cancellation rates, the customers can predict the occupancy rate levels easily. Even the
managers of the hotels are also uses this tool in order to capture the guest online activities
such as shopping behavior analysis, booking pattern etc. In the same way, Marriott also
creating analytic division through this tool (Fick and Brent Ritchie, 2019).
 Channel and overbooking management: It has been analyzed that in hospitality
industry, the revenue is mainly dependent upon channels that guests are used for a
booking. That is why the hotel manager also uses different channel management software
such as AxisRooms, ChannelRUSH in order to refresh the information relating to
availability of rooms. This somehow affect the revenue of the company. On the other
side, if there is a cancellation in the hotel, then manager provide future discount or
provide compensation as well.
 Using Artificial Intelligence, mobile and Chatbots: This creates positive impact upon
the sector such that using chatbot, the customer get answers of many questions and even
on social network also, it can serve as an additional sales channels. Apart from this,
customers also used mobile application in order to book their rooms. This shows that
using advance technology, the hospitality sector easily raises their revenue and generate
more profit for the welfare of the company.
 IDeaS G3 system: It is most advance and easy to use Cloud based solution that defines
how leverage hotel and market data to improve the profit and strengthen competitive
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