Travel and Tourism Toolkit

Travel and Tourism
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PART 1............................................................................................................................................1
Define revenue and yield management-......................................................................................1
Tools of revenue management-...................................................................................................3
Impact of various pricing strategy on the revenue management-...............................................3
Critical analysis of principle of the revenue management-.........................................................3
PART 3............................................................................................................................................4
Relationship among regulation, legislation and standard -.........................................................4
Company, contract and employment law that has impact on decision-making of business-......4
Implication of legislation, regulation and standard on decision-making-...................................5
Impact of regulation, legislation and ethical principle-..............................................................5
PART 4............................................................................................................................................5
Type of financial statement -.......................................................................................................5
Importance and value of budget-.................................................................................................6
Financial statements of British airways and Iberia.....................................................................6
Evaluation of business performance-..........................................................................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Travel and tourism toolkit is helpful for a company who are hugely contributing into the
travel industry. Through this tool they can effectively attract wide range of consumers to their
company and enhance their profits further.
British Airways is top airway company. They had their networks worldwide. It had its
headquarter in London. The above report ends with the definition of revenue and yield
management along with various principles and rationale of revenue management in travel
industry. Various tools that can be used by revenue management. Impact of the differentiated
pricing strategy that could be utilized by airline industry. Report further carried forward with the
employees law and contract law which has huge impact on the decision-making of company.
This report will examination of the potential implementation of the regulation and employees
and ethical principal on the companies decision-making. It will also provide rarefaction on the
rules and regulation of the company and their impact on their decision-making. In the last part of
this report will analyze the product investment strategy of the British Airways.
MAIN BODY
PART 1
Define revenue and yield management-
Revenue:
Revenue is income which a business gains from the general business activities, by selling
product and services to the consumers. It is also known as turnover or sales. Companies can
receive revenue from the interest, royalty or other fees. There are several ways for calculating
revenue, that fully depends on accounting method employs.
Yield Management:
It is the variable strategy of pricing which is based on influencing and anticipating
behaviour of consumer. The major goal of this is to maximize revenue from time-limited, fixed
resources that are room reservations in hotel, seats in airlines or advertising the inventory. Yield
management is based on selling to right consumer, at right time for the appropriate pricing. Data
driven approach is used for ensuring pricing is to be adjusted for maximizing the results in
business (Pimentel, Aizezikali and Baker, 2019). The yield management has narrow focus and
1

is generally concerned with selling price or sales volume through which the best possible yield of
revenue could be gained.
Significance and principle of revenue management for tourism and travel industry-
Revenue management is more useful in the travel industry. It can be described below-
Importance:
Revenue management in tourism render ability for making most out of the perishable
inventory of rooms for the hotel, accessing them for maximizing amount of money for
generating business (Pavlova, 2017). There is fixed cost in travel industry they need to analyze
the actual costing which are being met while providing services to the guests or travellers. This is
helpful in further innovation in both development of new product and services and the pricing.
Revenue management allows tourism sector to drive down their cost more efficiently. This is
also helpful in achieving competitive intelligence and the market awareness.
Principle:
There are five principles of revenue management. These can be described below-
 Value- The value includes perceived value that could be collected by survey and
feedbacks. Perceived and advertised value discrepancy must kept minimum at every time
through which guest don't get disappointed.
 Distribution Channels- Distribution channel is also known as marketing channel.
Through several distribution channel a British airline can opt various marketing
opportunities.
 Direct Booking- Direct booking let the tourist to book the airlines directly without any
mediators. This strategy is helpful in attracting tourist directly to the official website or
social media sites.
 Hotel Software, Insights and Data- The revenue manager of British Airways must
make their decision on the basis of recent and accurate data. The airline's software system
will also helpful for tool for manager to manage overall functioning and management.
 Experience that starts with websites- The British Airways must render a blogging
section on the website and sharing content on their social media profiles which is helpful
for company.
 Demand forecasting- It is most essential principle of revenue management. The manager
must project cost, need and revenue of British Airways (Board and Skrzypacz, 2016).
2