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

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-