The Travel and Tourism Business Toolkit - Revenue Management, HR Life Cycle, Legislation, and Contract Law

The Travel and Tourism Business Toolkit provides insights into revenue management principles, HR life cycle stages, employment and contract laws, and more in the travel and tourism industry. Learn about British Airways' revenue management tools, HR life cycle stages, and the impact of employment and contract laws on the industry.

The Travel and Tourism
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Rationales and principles of revenue management...........................................................3
P2 Application of revenue management tools .......................................................................5
TASK 2............................................................................................................................................6
P3 Stages of HR life and importance of it in retaining talent.................................................6
P4 Performance management plan as well as techniques to overcome negative behaviour . 7
TASK 3............................................................................................................................................9
P5 Legislation that organisation in travel and tourism...........................................................9
P6 How employment and contract law impact the travel and tourism...................................9
TASK 4..........................................................................................................................................10
P7 Financial statement and reporting mechanism ...............................................................10
P8 Importance of budgets and identifying the variances......................................................11
CONCLUSION..............................................................................................................................12
REFERENCE.................................................................................................................................13

INTRODUCTION
The word travel and tourism is considered a part of the service sector, and it refers to the
activities of traveling to different areas for work or pleasure. Travel is defined as the act of
moving from one site to another, and it includes long-distance, short-distance, domestic,
international, and other types of travel (Gallego and Topaloglu, 2019). Both the travel and
tourism industries contribute to increased economic revenue, employment creation, cultural
exchange between foreigners and natives, and infrastructural development. British Airways is
considered for the report which is one of the largest international scheduled airlines. And it offers
a variety of services that are business, first-class travel, a lounge, in-flight entertainment, loyalty
programs, and many others. The travel and tourism industry's HR life cycle and performance
management strategy are also presented. In addition to this, different legislations and how
employment and contract law affect company decision-making will be elaborated. This project
report discusses the various types of financial statements and the importance of budgeting in
controlling business performance (Calderwood and Soshkin, 2019).
TASK 1
1 Rationales and principles of revenue management
Revenue management is defined as a concept or application related to disciplined
analytics that assists businesses in predicting customer behavior, micro-markets, product
availability, and utilizing pricing elasticity to maximize organizational growth rate and revenue.
A revenue system is a long-term strategic method that assists businesses in generating revenue
by maximizing efficiency (Ozdemir, Ar and Erol, 2020). Revenue management is critical for
British Airways to have effective and efficient revenue structure management. The following are
the rationale and principles of revenue management:
Principals of revenue management
British Airways must adopt revenue management systems and procedures that enable the
company to meet its set goals and objectives promptly. The following are some guidelines-
Market segmentation- It is the most important revenue management technique because it allows
organizations to target potential market segments with growth and development prospects.
British Airways divides its market into groups. according to requirements and characteristics that
help businesses attain higher revenue (WYMAN, 2020).

 Demand forecasting and supply forecasting: This is an important revenue management
theory that aids travel and tourism organizations in estimating consumer demands and
organizational capacity to efficiently meet these expectations. It assists British Airways in
maintaining the demand-supply balance necessary for commercial success.
 Overbooking and information system: This is a revenue management principle that is
concerned with handling the situation of overbooking demands with the appropriate
implications and changes. British Airways employs appropriate technology to engage
with a vast consumer base, allowing the company to make more income.
• Pricing and inventory management: It is critical for businesses to control pricing and
inventory to complete operations on time and efficiently. Effective pricing attracts more tourists
to an organization, increasing revenue.
Rational of revenue management:
Revenue management assists businesses in providing appropriate services and an
efficient experience to customers, allowing them to stay with the company for a longer period.
Businesses can maintain a strong economic structure and acquire enduring competitive
advantages by using a revenue management strategy. The following are some of the rationales-
• It is critical for an organization's growth because it focuses on each department as well as
analyses some factors that must be implemented by the organization in order to reach its growth
and development goals (Škare, Soriano and Porada-Rochoń, 2010).
• Revenue management aids businesses in implementing creative trends that allow them to
improve services at a lower cost.
• It assists businesses in maintaining a balance between demand and supply, which leads to
growth and success.
2 Application of revenue management tools
Revenue management tools are pricing methods that enable businesses to increase
revenue and achieve their objectives by using the appropriate pricing techniques at the
appropriate moment. There are several pricing tactics indicated that the travel and tourist
industry can use to increase profit and revenue. Revenue management technologies are critical in
the transportation industry for maximizing profitability. The following are some revenue
management tools concerning British Airways-

Reservation services: Reservation services are a critical component for any transportation
company. Customers expect substantial benefits in the shortest amount of time possible. Rapid
booking facilities are a crucial necessity for clients in today's competitive business environment
(Thao, V.T., von Arx, W. and Frölicher, J., 2020). It allows customers to connect with British
Airways' values, allowing the company to achieve success and growth. As a result, it is the most
important tool for achieving the goal of increased profitability.
 Property management system: This is the most important revenue management system
since it helps firms manage numerous property characteristics associated with
transportation services. There must be hotels available for travelers to stay hassle-free, as
required by the transportation sector. It helps British Airways manage property and
tourist activities more efficiently.
 Rate shopper: It is critical for organizations to analyze price and competitive aspects that
aid British Airways in determining market trends. This revenue management tool also
assists businesses in analyzing and implementing appropriate changes that lead to
success.
 Demand forecasting: It is an effective revenue management tool that assists businesses in
obtaining information about client demand in the market. It is used by British Airways to
determine current market needs and past practises. It enables businesses to provide clients
according to their needs, resulting in increased income and organizational sustainability.
TASK 2
3 HR life stages and their value in keeping talent
The human resource life cycle includes several stages that assist businesses in achieving their
management and growth goals (Xiang and et.al., 2020). In the travel and tourist industry, it is
critical to have proper human resource management that assists businesses in expanding their
culture. The following are some stages of the HR life cycle in the context of British Airways for
the post of chief operation manager-
Recruitment- It is one of the HR department's main responsibilities as HR managers
guarantee that qualified and competent people are appointed to vacant positions who are capable
of performing stated activities in a timely. Effective manner to meet corporate goals and
objectives by appointing the right people at the right time and in the right location helps

businesses enhance their efficiency and performance. Candidates for the position of trip
coordinator should be enthusiastic nature lovers. Travel agents are hired by British Airways for
the chief operation manager post of based on their commercial acumen and communication skills
(Jamal, 2019).
Training and development-Managers provide proper training to employees in order to
have proper knowledge of the policies and work which will be performed on daily basis. For the
purpose of understanding operations and ongoing company processes in the following level of
the HR life cycle, training, and development. The travel agent must possess a variety of abilities
to effectively communicate organizational culture to customers and other workers. British
Airways provides job-specific training to assist employees conduct operations as efficiently as
possible.
Motivation- Employee motivation is critical in dealing with and working with
organizational perceptions. After informing employees about their obligations, company leaders
form bonds with them, which encourages them to stay with the company. British Airways
incentivizes travel agents by providing a better working environment and regular performance
reviews.
Assessment of performance: At this stage of the HR life cycle, managers review or
measure the work that workers do. British Airways employs a variety of evaluation and
management strategies that allow the company to track employee behaviours and direct them to
perform at their best. Work reviews are conducted by the relevant organization to assist
management in evaluating the performance of travel agents.
Rewards and recognition: It is the job of HR managers to start some sort of recognition
and appraisal program to motivate employees to perform at their best. It enables companies to
keep their best and most experienced personnel for extended periods.
Staff retention
It can be done by hiring right people in the organisation and it is also enhanced by training them
for few months.
The expectation of the company must be communicated clearly with the employees in order to
reduce the chances of conflicts minimise mismatches in skills and role responsibilities.

Importance of HRM life cycle
• The HR life cycle helps businesses acquire great employees, then give them training
and development opportunities that inspire them to stay with the company.
• HR managers adopt a variety of initiatives and design policies to help them maintain a
healthy work environment. Talent is retained when the working environment and
conditions are efficient.
• Managers provide employees various monitory and non-monitory rewards based on
their performance, which improves employee engagement and retention.
4 Performance management plan as well as techniques to overcome negative behaviour
The travel agent must launch numerous actions and improvement sets as part of the
performance management plan. The organization employs a variety of strategies to improve and
evaluate employee performance. British Airways must reduce unfavourable employee behaviour.
The following are some techniques-
Planning: Organizational HR managers create effective plans that include precise goals,
objectives, and other actions that are required to meet company objectives on time and
efficiently. Managers listen to employee comments and provide them direction on how to
complete defined tasks as efficiently as feasible. British Airways organizations give travel agents
information on their roles and responsibilities, allowing them to operate smoothly (Hockert,
2018).
Coaching: British Airways gives staff training and coaching to help them conduct
operations more efficiently. It decreases bad behaviour while also addressing difficulties with
employee retention.
Reviewing: British Airways analyses and reviews employee performance to assist them
to develop their abilities and overcoming issues that arise during their work. Employees are
evaluated so that they can complete specific procedures in a timely and efficient manner. Action:
The final stage of the process involves delivering rewards and recognition as well as taking
measurable actions to improve performance. It assists businesses in improving employee
performance as well as reducing conflicts that negatively affect their performance.

Objective of
management
Current
proficiency
Expected Actions Time frame
Communication
skills
5 out of 10 9 out of 10 Employees
receive
professional
training to
strengthen their
communication
skills. It improves
employees'
personalities and
their ability to
contribute to the
achievement of
business goals.
It usually takes 6
to 7 months.
Commercial
awareness
5 out of 10 9 out of 10 Employees
receive training
from the company
to improve their
commercial
awareness.
It usually takes 7-
8 months.
TASK 3
5 Legislation that organizations in travel and tourism
Various rules and legislations are in place in the travel and tourist industry to assist
businesses in performing specific operations efficiently (Fennell, 2019). Legal concerns and
problems harm corporate performance and functionality. The following are some examples of
legal procedures and legislation that have an impact on business operations-
1968 Trade Description Act: The goal of this act is to safeguard customers from deceit
and misinformation. If an organization disregards the law, it will be subject to a variety of fines

and sanctions. Organizations can achieve their long and short-term objectives more efficiently by
applying this concept to their business practices.
The 2011 Tourism Act: The travel and tourism industry operate within a legal and regulatory
framework that allows businesses to operate more efficiently. The organization's supreme
authority ensures that this legislation and related compliances are followed by the organization in
terms of fairness, quality, and orderliness to govern the framework. British Airways uses this
statute to avoid fines and other legal issues by following the rules.
Tourism Development Act of 1969: This Act was enacted to help businesses coordinate
their operations as well as strengthen the tourism sector. The British Tourist Board of England
drafted this legislation to enhance the tourism industry. This law relates to providing financial
aid to organizations in order to help them run their businesses more efficiently and develop their
activities.
To execute corporate activities and operations efficiently, travel and tourism
organizations must follow all of these laws and regulations.
6. How does employment and contract law impact the travel and tourism
The government has enacted several rules and regulations that have an impact on the
travel and tourist industry's decision-making process. It is critical for businesses to take these
rules and regulations into account when formulating company practices and strategies. The
following are some of the effects of employment and contract rules on company decision-
making-
Contract laws- These laws are defined as legislation that protects both parties, such as the
vendor and the buyer (Holden, 2018). It has an impact on decision-making in the travel and
tourist industry since businesses create and maintain contracts following the act's requirements.
British Airways considers this act in its business procedures to reduce risk and contract
problems. If contract law is not followed properly, it can lead to conflicts and harm an
organization's performance.
Employment laws: The government creates employment laws to protect the interests of
employees and to promote their health and values. Employment regulations have an impact on
the travel and tourist industry's decision-making process since businesses must make all
decisions following the law. The Employment Rights Act protects employees from unfair

practices and ensures that they receive fair dismissal and paternity leave. Employees at British
Airways are paid a minimal wage and have efficient working hours because of this rule.
Companies Law: Company law is concerned with an organization's rights, codes of
conduct, and relationships. It is defined as the legal practices that cover an organization's whole
life cycle. The decision-making process in the travel and tourist business is regulated by
corporate legislation, which has an impact on overall organisational performance and
functionality. British Airways takes into account the legislation and makes informed decisions
that help the company run smoothly.
TASK 4
7 Financial statement and reporting mechanism
Financial statements assist companies in determining their financial success. It is a
crucial tool that allows businesses to assess their present financial status and make informed
decisions (Fennell, 2021). Because travel and tourism is the world's fastest expanding business,
financial performance is measured through financial statements. The following are some
financial statements-
Income statement: An income statement is a profit and loss statement that allows a
company to record its revenue and expenses systematically over some time. It assists the travel
and tourist business in determining whether or not the industry is profitable. British Airways
used income statements to analyze the company's profits and losses.
Balance sheet: The financial statement that controls an organization's liability and assets
is the balance sheet. It is prepared quarterly as well as annually by the organization. The travel
and tourism business creates a balance sheet to maintain the organization's strong position by
balancing assets and liabilities. This method is used by British Airways to analyze the financial
positioning of businesses.
Cash flow statement: A cash flow statement is a summary of records that assists a
business in identifying the sources from which cash is received. It does, however, assist
businesses in determining financial outflows. It assists British Airways in identifying available
cash in the organization that may be utilized to efficiently conduct company activities.
8. Importance of budgets and identifying the variances
The most crucial instrument for businesses to manage and control their financial activity
is the budget. It aids in the budgeting of businesses. Organizations create quarterly and annual

budgets to assist businesses conduct specific operations efficiently and meet their goals. It is
defined as the forecasting of an organization's revenue and expenses over a specified time period.
British Airways creates budgets based on predictions to help businesses get the most of their
cash.
Some of the importance of budgets are:
• Budgets assist businesses in tracking organizational efficiency and effectiveness to meet
set goals and objectives. British Airways creates a budget to meet financial objectives and
manage variances. Budgeting ensures that firms have enough money and financial
resources to use in the future. Budgets assist businesses in managing performance,
controlling finances, and making the best use of their financial resources.
• Budgeting assists businesses in avoiding debt. It helps businesses reach their goals and
objectives more effectively, as well as minimize their debt levels (Vives, Jacob and Payeras,
2018).
The value of the budget in the company is as follows:
• Budgeting assists businesses in efficiently managing assets and liabilities by providing them
with accurate information about their assets and liabilities.
• All departments of an organization can be managed efficiently by developing a proper budget.
It also aids businesses in reducing wasteful spending.
• Budgets assist businesses in coordinating activities and operations in order to meet business
goals and objectives on schedule and efficiently.
Variance analysis: The difference between planned and actual numbers is what variance analysis
is all about. Variances have a good and negative impact on business performance and
functionality. The travel and tourism sector compares actual costs to average costs. The
variations differ between these costs and can be higher or lower than the projections. Analysis of
variance aids in the efficient preparation of budgets and the proper direction of corporate
activities.
CONCLUSION
As per the above report, it can be concluded that the tourism industry is associated with
businesses that deal with the hotel, lodging, tourism, and hospitality management. Different sorts
of revenue management solutions are used by businesses to assist them to earn more revenue.
HR life cycle assists businesses in retaining personnel. The government develops numerous laws

and legislations, such as employment law, contract law, and other matters that have an impact on
business decision-making. Financial statements aid in the analysis of a company's financial
situation and performance.

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