Concept and Principles of Revenue Management

Added on - 21 Feb 2021

  • 14

    Pages

  • 4341

    Words

  • 7

    Views

  • 0

    Downloads

Trusted by +2 million users,
assist thousands of students everyday
Showing pages 1 to 4 of 14 pages
Unit 4
Table of ContentsPART 1 SALES, BUDGET AND REVENUE MANAGEMENT.................................................3Concept and principles of revenue management.......................................................................3Applicability of revenue management tool in Lotus Group Company.......................................4Impact of pricing strategies on revenue management................................................................4Applicability of principles of revenue management in Lotus Group Company.........................5Different types of financial statement and reporting system in the company...........................5Importance and Value of budget for controlling business performance and variances..............6Interpretation of financial statement and reports in an organization..........................................6Business performance based on financial statement reports of travel and tourism industry.....6PART 2 HR LIFE CYCLE AND HUMAN RESOURCE STRATEGY.......................................8Human resource life cycle and its different stages...................................................................8Importance of HR life cycle and overcoming issues of staff retention......................................9Recommendation on improvement of HR processes.................................................................9PART 3 LEGISLATION AND ETHICS IN TRAVEL AND TOURISM..................................10Impact of legal issues on travel and tourism industry and legislations that will be applicablein this sector..............................................................................................................................10Impact of employment and contract law on business decision making....................................10Potential implications of regulations, legislations and standards on decision making............10Critical reflection on potential implication..............................................................................11CONCLUSION..............................................................................................................................11
INTRODUCTIONTravel and tourism industry is providing leisure to people that have interest in travelingfrom one place to another. At present, it is the largest sector that is covering larger share in themarketplace. It is mainly consists of five parts such as lodging operations, transportationservices, providing food and beverage operations, retail stores etc.The Present study will be based upon on Lotus Group Company. It is the British travelcompany that owes Dialal flight and lotus business travel (Xiang, Magnini, and Fesenmaier,2015). It is also responsible for making travel arrangements that are related to flights, hotels, andtours.Report will include concept of revenue management and its rationality in travel andtourism sector. Applicability of revenue management tools that will help in maximizing profitfor the future. It also includes pricing strategies on revenue management in a specific sectorunder travel and tourism industry. Furthermore, it will include different types of financialstatements and reporting mechanism that will be used in an organization. Importance of budgetthat will help in evaluating performance of the company. It also emphasize on HR life cycle thatis applied in travel and tourism sector. There are several legislations that will have an impact onbusiness decision making.PART 1 SALES, BUDGET AND REVENUE MANAGEMENTConcept and principles of revenue managementIt refers to the process of selling product and services to right people, at the right timeand at right price that will help in evaluating the efficiency of cost in Lotus Group. It will help inevaluating the performance of company by using data and information that will help inanalyzing demand and the behavior of consumer towards Lotus group.Principles of revenue management
Market Segmentation:-This principlehelps in determining customer needs and demands thatwill help in satisfying its needs and wants (Sigala, 2017).Customers are divided into varioussegments according to their demands that will also help them in fulfilling easily. It is importantfor Lotus Group to segment consumer that will help in increasing sales as consumers are theking of the market.Supply Forecasting:-It is importantto check out the availability of rooms for the traveler asthere may not be shortage of rooms so it is to be managed in advance for the future course ofaction by the manager of Lotus Group.Applicability of revenue management tool in Lotus Group CompanyThere are four important tools that will be used in the company are as follows:Property management System:-This tool is used for determining success of company in thefuture. This will help in making easy flow of work in company for the future. Nowadayscompanies are adopting different technologies that will help in upgrading different systems thatwill be applicable in Lotus Group. In selecting this tool company needs time for maintainingflexibility in the premises.Booking Engine: -This is also an important tool that will be used in detecting sale at a point oftime that will help in benefitting company in the future. This will help in attracting internationalcustomers from other countries as well. It is important to use this tool in the business as it willfacilitate in increasing salesChannel manager:-This will help in managing stock of Lotus Group manager effectively sothat it will facilitate various procedures for future.Rate Shopper:-It is used in paying attention to competitors that are available in the market.Through this company can evaluate its ranking for future in market.Impact of pricing strategies on revenue managementIt is having a greater impact on sales of the company. As consumers are the king ofmarket so company have to produce goods accordingly. It is important for Lotus Group to
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Download This Document