Case Study on Travel and Tourism Management

This report is based on the "travel and tourism talent management life cycle". This presented report discusses the HR life cycle for talent management along with a performance management plan for negative behavior and staff retention. The tour and tourism management operations, Carnival Corporations and Plc are selected here. This report includes the principle of revenue management and its application for the travel and tourism industry. Also, we will discuss here, the management and importance of budgets and maintaining statistical and financial records of the company.

Travel and Tourism
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
1. HR Life cycle for talent management......................................................................................1
ACTIVITY 2....................................................................................................................................3
2. Performance management plan for negative behaviours and staff retention...........................3
ACTIVITY 3....................................................................................................................................4
3. Laws in travel and tourism industry.........................................................................................4
ACTIVITY 4....................................................................................................................................5
4. Legal and ethical consideration for Carnival UK....................................................................5
ACTIVITY 5....................................................................................................................................6
5. Discussion of revenue management and their application to the Cruise line sector................6
ACTIVITY 6....................................................................................................................................7
6. Importance of budgets..............................................................................................................7
ACTIVITY 7....................................................................................................................................7
7. Financial statements and reporting mechanisms .....................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Travel and Tourism management are the plans and programmes which applies the
business concepts in the travel industry (Abubakar and Ilkan, 2016). Such programs are used by
the professors in the tourism schools or colleges for the purpose of motivating students to
undertake courses such as human resources and facilities management, financial strategies along
with maintaining media relations. It is a management course which specialises the students in
the tour and tourism management by providing necessary values, knowledge, attitudes as well as
skills. All these helps in occupying a operational position by the students in the tourism sector.
For understanding the Tour and Tourism management operations, Carnival Corporations and Plc
is selected. The selected organisation is a cruise operator which was established in the year 1972
by Ted Arison and has its headquarters located at Miami, Florida and London.
This presented report discusses about HR life cycle for talent management along with
performance management plan for negative behaviour and staff retention. In addition, the
potential impact of legal and ethical considerations on the travel and tourism businesses. Further,
it includes the key principle of revenue management and their application for the travel and
tourism industry. Lastly, the management and importance of budgets and maintaining statistical
and financial records.
ACTIVITY 1
1. HR Life cycle for talent management
Human resource life cycle is a framework of managing the available human resources at
each stage of achieving the objectives of the organisation. It is a continuous system which helps
in dealing with each individual in comprehensive, holistic manner for the purpose of ensuring
that the business gain maximum benefits from the human capital employed (Battour and Ismail,
2016). This system describes the functions, roles and responsibilities of the human resource
department to identify the employees role at different stages for the purpose of optimising the
progress in the business. It includes the process of managing the abilities, capabilities,
competence and power of human capital within the firm.
Talent management is the commitment of the human resource manager to recruit, select,
hire, develop and retain the prospective employees available with the entity. It is a business
strategy to attract the prospective talent and converting them into loyal employees. It is a system
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to develop a work processes for retaining and developing the hired workforce. It is a useful
concept as it describes the organisational commitment for managing the talented workforce.
HR life cycle comprises various stages for managing the talented workforce. The food
and Beverage manager of the selected organisation follows all the stages (Tech Target, 2019).
The description of each are the following:
 Stage 1: Recruitment stage: This stage occurs when the organisation has attracted the
prospective candidate. It involves finding the talent and motivating them to apply for the
job. The manager of the selected firm attracts and recruits the talented people towards the
organisation. Talent acquisition software is used by Food and Beverage Manager for
screening as well as scheduling the interviews with the prospective candidate to well
organised the hiring procedure for the purpose of attracting the top talent.
 Stage 2: On board stage: At this stage, the recruited candidate is selected and has
become the part of the other workforce in the organisation. It is the duty or role of the
manger to provide all the relevant information and tools top the selected employee for
integrating them with the company culture. The information related to organisational
policies, job duties, work culture and procedures are provided and training sessions are
programmed by the managers for encouraging the working in the cruise ship.
 Stage 3: Develop stage: By consistently motivating the selected employees through
providing them feedbacks and performance reviews. The managers of the selected firm
performs the role of analysing and evaluating the performances and accordingly provide
the frequent feedbacks for development. The feedbacks are important for engaging the
employee at work as well as motivates employees to achieve goals.
 Stage 4: Retain stage: Various programmes are developed to retain the workers for
continuous involvement which helps in performing continuous operations as well as
building good relationships with other members in the organisation. Food and beverage
manager applies various strategies and efforts to retain the workforce. The manager uses
talent management software along with succession planning to retain the employees and
promote them (Raj and Griffin, 2015).
 Stage 5: Off board stage: At this stage, the employee leaves the organisation due to
various reasons such as new job, lay-off, retirement or termination. It is the responsibility
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of the managers of the cruise ship to follow the procedures as well as documentation
related to the off boarding process.
HR life cycle management is the important function for managing the talent in the market
and job place. The Food and Beverage manager of the Cruise ship deals with the human assets of
the firm. They establish the life cycle programme to retain and develop the talents. By analysing
the working the managers evaluates and measures the performances of each employee and
accordingly retain and develop them to achieve success in their career. Thus, the HR life cycle
management plays an important role in managing the talent by focusing on retention and
development in long term.
ACTIVITY 2
2. Performance management plan for negative behaviours and staff retention
Performance management plan is a tool which helps in improving the employee
deficiencies to achieve the success. Such framework is used to address the failures and
converting them into opportunities to meeting job goals. It is a tool for improving the
performances at workplace. Such plan is used by the managers to address the issues and
communicate the same to the executives to improve the performance in carious specified areas.
The plan helps in improving overall performances, improve productivity, clear accountabilities,
saves times, retain the loyal employees, reduces conflicts, overcome communication barriers,
ensures efficiency in the smooth performances (El-Gohary, 2016). Various issues or hurdles
comes in the path of the success in all organisations. But it is the responsibility of the managers
to solve them by adopting a comprehensive performance management plan. The performance
management plan for Carnival Corporation and Plc to resolve the negative behaviour of the
waiting staff and overcoming issues of staff retention is as follows:
 Audit the current system: The current system in the organisation is audited where
problems or issues are identified. The management of selected Cruise ship has
identified the waiters and waitresses are complaining about the working conditions,
refusing to work additional tasks, unwilling to cooperate with the team members. The
current performances of the workforce is carefully analysed and reports are been
prepared accordingly.
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 Presenting information to senior management: The reports prepared at the audit
stage are presented to the senior management and the performance is taken
consideration. The senior management of the chosen firm looks carefully to the issues
and frame strategies to overcome them. The managers consults with the workforce
related to the issues and try to reach on the strategies which are beneficial to the
organisation as well as the employees.
 Finalize the strategies and implementation: the final strategies are formulated by
the managers of the selected business. The strategies are planned according to the
conversation between workers and managers. The techniques for solving the negative
behaviour employee engagement programmes, building effective relationships
between managers and waiting staff. By adopting such techniques the managers can
resolve the negative behaviours of the waiting staff. The techniques adopted for staff
retention includes favourable working conditions and timings, additional payment for
additional work done, providing ongoing advancements (Forno and Garibaldi, 2015).
 Evaluation: The management has successfully implemented all the strategies and
evaluated the results. They have found that the negative behaviours of waiting staff
has converted into the positive behaviour and are performing work with systematic
orders. The management is successful in retaining its staff members by providing
them the benefits.
ACTIVITY 3
3. Laws in travel and tourism industry
Travel and tourism laws are the government regulations which regulate the functions as
well as the aspects in the travel industry. Such laws includes all the things related to hospitality,
employment and public health regulations. The objectives of such laws are related to the
management of the tourism, protection, conservation of the scare natural as well as cultural
resources, sustainable development, involvement of local communities along with private sector
for developing tourism activities. Various travel and tourism laws are formulated with the goal of
keeping all the customers happy, satisfying them and building an image by formulating and
implementing various tourism activities (Gössling, Scott and Hall, 2015). In the hospitality
sector, it is very important to keep the clients or guests engage with the organisation by
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providing them suitable packages for achieving growth and success. The tourism laws are
successful in changing the lifestyle of multiple countries in better manner. These are successful
in improving the quality of living. They encourages the local communities to spend more on the
spiritual activities and enjoying them at most. It can be said that tourism laws provide a
framework related to legal right of travelling. The travel and tourism industry comprises various
laws such as laws related to accommodation, laws related to infrastructural developments, laws
of trans border movements, laws related to employees working conditions, conservation laws,
human resource development laws, laws for protecting consumer and many more. All these laws
are applicable in all the organisations performing operations in the travel and tourism industry.
ACTIVITY 4
4. Legal and ethical consideration for Carnival UK
Legal consideration includes the exchanging the value of more than two things for legally
binding contract. For a contract to be valid, legal consideration is mandatory. The managers of
Carnival Corporation and Plc recognises the responsibility of providing leadership and
performing the operations of the business like the responsible citizen. The corporate leadership
includes the business ethics and conduct where judgements are taken with the involvement of
each employee as well as manager. They are committed to work for achieving and maintaining
the standards of ethical conduct. All the members of the selected organisation performs works
according to the stated laws and ethical principles (Carnival Corporation & plc, 2019). The legal
considerations for carnival UK are the following:
 The modern slavery act, 2015: It is designed by the parliament of United Kingdom.
This act contains several provisions such as protecting the children from exploitation,
labours from forceful work, states from slavery and trafficking. The management of
Carnival Corporation and Plc respects and follows all the applicable laws for taking
ethical decisions in the business.
 Health, Environment, Safety Security & Sustainability: the management of the
selected organisation has established a board level – health, environment, safety security
and sustainability for fulfilling the responsibilities towards the society. The managers
carefully monitors all the policies, programs, compliances related to the legal
requirements.
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The regulations, legislations and ethical principles impacts the working for taking the
critical decision making for Carnival Corporation and Plc. The company carefully considers all
the regulatory legislations to protect the workers and children from exploitation, provide safety
and security to the private organisations as well as local communities, optimum usage of the
natural resources and to sustain in the competitive environment.
ACTIVITY 5
5. Discussion of revenue management and their application to the Cruise line sector
Revenue management is the system where optimization of income revenue is done. It is a
tool which is based on the demand and supply. The key principle of such management is to
anticipate demand of any product and accordingly optimise the prices to achieve the financial
results. Such technique is recognised for matching the demand and supply in the travel and
tourism industry. In relevancy to the travel and tourism industry, revenue management helps in
using the past as well as current bookings to forecast the current along with future demand
accurately for maximising the revenues (Laws, 2015). They are used by the managers for
predicting distinct behaviour of potential customers, optimizing availability of product according
to the prices. The principles of revenues management are applicable on revenue mix control,
market segmentation, performance measurement, demand and supply forecasting. Such
management deals with duration control and pricing based on demand.
The Cruise line industry applies revenue management tools to generate and maximise
profits through various manners. In such industry, dealing with duration as well as demand based
pricing is considered for controlling the prices of the rooms, understanding the perception of
customers towards the prices on certain time period. When the prices of the Cruise rooms goes
high, they are only available for those who are liable to pay them. Some rooms are reserved for
the higher season, they are sold for higher prices. In the low season, the prices of such rooms
falls and various techniques such as discounting and promotion are done to promote the sale for
the purpose of stimulating the demand to achieve higher profits. Differentiated pricing strategy is
used by the Cruise lien industry managers which charge different prices from different customers
or clients for the same room. There are special rooms who are only sold to those customers who
have more money to pay by charging different prices. By charging different prices from different
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customers helps in earning more revenues and this maximises the profits (Moutinho and Vargas-
Sanchez, 2018).
ACTIVITY 6
6. Importance of budgets
Budgets are the plans for spending the money. These are the future plans which are
formulated on the basis of past and current activities. A budget can be said as the estimation of
the incomes and expenditures of the specifies future time period. These are re evaluated on
certain periodic basis (Lyu, 2016). They are important in the organisation as they provides a path
for achieving the maximum results. By considering the budgets, the focus move to use the
money in the important activities which have chances to give maximum outputs. Budgets helps
in providing a coordinated plan and prepare to overcome the uncertain or unexpected situations.
They guides the management to evaluate the plans and programmes and provides a plan for
spending. Such tool empowers the managers to carefully decentralize the authority without
losing any organisational control. They are used for disclosing the inefficiencies, deviations
along with weaknesses and provide an accurate measures for controlling business performances
and identifying variances.
ACTIVITY 7
7. Financial statements and reporting mechanisms
Financial statements are the statements which displays the information related to the
financial activities, position, earning potentiality of the organisation in the competitive market.
Such statements are used by the marketers, creditors and investors fro taking any business
decision. These are the reports which the financial manager prepares for providing the financial
information to the owners. The financial statements of the Carnival Corporation & Plc and Royal
Caribbean Cruises Ltd are the following:
 Income statements are used for analysing the revenues earned by the firm in the
accounting time period. They shows the organisational expenses and revenues in a
particular period (McKercher, 2016).
 Balance sheet discloses detailed information assets, liabilities and shareholders equity of
the entity. They shows the balance of assets along with liabilities in the preceding period.
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 Cash flow statements describes the inflows and outflows of the cash during the
financial period. Such statements are used for analysing the changes in income
statements as well as balance sheets which affects the cash positions. The analysis is
broken down into three activities such as operating, investing and financing.
Reporting mechanisms are used to find the issues. Theses are put in place of issues
which are found by the financial manager by carefully analysing each operating task. The issues
are carefully recorded for fulfilling the requirements and helps in assisting in future. Such
mechanisms helps in controlling risk factors (Medlik, 2016). The management of Carnival
corporation & Plc and Royal Caribbean Cruises Ltd uses the reporting mechanisms to improve
the reporting formats in their organisations.
Evaluation of Profit and loss statements of Carnival Corporation & Plc and Royal
Caribbean Cruises Ltd.
Profit and loss statement of Royal Caribbean Cruises Ltd.
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From the above profit and loss statements of Carnival Corporation & Plc and Royal Caribbean
Cruises Ltd it can be evaluated that the net income of Royal Caribbean Cruises Ltd is Rs. 1811
million and the net income of Carnival Corporation & Plc is Rs. 3152 millions which is more
than the former.
CONCLUSION
From the above discussion it can be concluded that tour and tourism management plays
essential function as it provides necessary values, knowledge, attitudes as well as skills through
the tourism schools or colleges for the purpose of motivating students. The report presents
human resource life cycle plan for Food and beverage manager ion the Cruise ship along with the
performance management plan for negative behaviour and staff retention for waiting staff. It
further discusses laws in the travel and tourism industry with the legal and ethical considerations.
The key principles of revenue management and their application to the cruise line sector. It also
presents the importance of budgets and different types of financial statements and reporting
mechanisms as well as evaluation of the profit and loss statements between two organisations.
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REFERENCES
Books and Journals:
Abubakar, A. M. and Ilkan, M., 2016. Impact of online WOM on destination trust and intention
to travel: A medical tourism perspective. Journal of Destination Marketing &
Management. 5(3). pp.192-201.
Battour, M. and Ismail, M. N., 2016. Halal tourism: Concepts, practises, challenges and future.
Tourism management perspectives. 19. pp.150-154.
El-Gohary, H., 2016. Halal tourism, is it really Halal?. Tourism Management Perspectives. 19.
pp.124-130.
Forno, F. and Garibaldi, R., 2015. Sharing economy in travel and tourism: the case of home-
swapping in Italy. Journal of Quality Assurance in Hospitality & Tourism. 16(2).
pp.202-220.
Gössling, S., Scott, D. and Hall, C. M., 2015. Inter-market variability in CO2 emission-
intensities in tourism: Implications for destination marketing and carbon management.
Tourism Management. 46. pp.203-212.
Laws, E., 2015. Health tourism. Health and the International Tourist (Routledge Revivals). 199.
Lyu, S.O., 2016. Travel selfies on social media as objectified self-presentation. Tourism
Management. 54. pp.185-195.
McKercher, B., 2016. Towards a taxonomy of tourism products. Tourism Management. 54.
pp.196-208.
Medlik, S. ed., 2016. Managing tourism. Elsevier.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Raj, R. and Griffin, K. A. eds., 2015. Religious tourism and pilgrimage management: An
international perspective. Cabi.
Online:
Carnival Corporation & plc. 2019. [Online]. Available through:
<http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-ethicscompliance>
Tech Target. 2019. [Online]. Available through:
<https://searchhrsoftware.techtarget.com/definition/employee-life-cycle>
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