Principles of Revenue Management in the Travel and Tourism Industry

This report discusses the principles of revenue management in the travel and tourism industry, focusing on Carnival Corporation & PLC. It covers market segmentation, pricing and inventory management, and revenue management tools. It also explores the types of financial statements and the importance of budgets in managing business performance.

The International Travel &
Tourism Management
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 .................................................................................................................................................3
P1 Principles of revenue management.........................................................................................3
P2 Revenue management tools to generate profits......................................................................4
LO2 (Completed in PPT).................................................................................................................4
LO3 (Completed in PPT).................................................................................................................4
LO4 .................................................................................................................................................4
P7 Types of financial statement ..................................................................................................4
P8 Importance and value of budgets............................................................................................5
CONCLUSION................................................................................................................................5
REFERENCE ..................................................................................................................................6

INTRODUCTION
In business environment different types of organisations are running their business which
helps to maintain the productivity and profitability of a nation. Travel and tourism is one out of
them important industry that is providing variety of services to customers. Herein, all activities
and performance are managed by managers who manages and organise functions efficiently
(Baumgartner and Bansal, 2019). To understand about this Carnival Corporation & PLC is taken
that is British cruise operator providing hotel style accommodation, food, bars and shore
excursions, entertainment and event organise. This report covers principle of revenue
management in cruise line industry and importance of budgets that are used in businesses.
LO1
P1 Principles of revenue management
Revenue management is considered as application of disciplined analytics which predict
consumer behaviour at micro level and optimise products and services for the purpose of
maximising growth. The rationale in context to Carnival Corporation & PLC are as defined:
 This is important to manage the facilities and funds that arises in organisation at the
moment of providing services (Jayasooriya, 2019).
 This helps to manage the business activities and staffing level in relation to hospital
industry that helps to work accordingly. With the help of revenue management hotel manager can anticipate demand and optimise
availability of resources effectively.
Principle of revenue management
Market segmentation: In this market is segmented at different types such as
behavioural, psycho graphical, geographical etc. that helps Carnival Corporation & PLC to
maintain the productivity and profitability effectively.
Pricing and inventory management: This is used by manager of Carnival Corporation
& PLC to set the prices and cost of cruises services so customers can get easily. Moreover,
inventory management helps managers to manage the inventory level and place order
accordingly that helps to increase profitability.

P2 Revenue management tools to generate profits
For every organisation it is important that to focus on revenue management and increase
the productivity effectively. In Carnival Corporation & PLC managers are responsible to manage
the activities and increase profitability. The tool in relation to revenue management used by
management are as defined:
Property management system - This is key tool which is used for success of hotel
establishment and managing services. With the help of this tool workflow of Carnival
Corporation & PLC become easier and important that helps to complete the activities and
manage business performance (Malachovský, 2020).
Channel management – This tool is used to manage the inventory on all reservation
channel from single monitoring point that helps to manage the business performance. In Carnival
Corporation & PLC managers are responsible manage the inventory and other activities that can
help to increase business performance.
LO2 (Completed in PPT)
LO3 (Completed in PPT)
LO4
P7 Types of financial statement
In Carnival Corporation & PLC managers are preparing different types of financial statement
that are as defined:
Income statement: In this, manager of Carnival involves all income and expenses which
incurred during the year. This helps to reveal financial performance of a company in entire
reporting period (Phillips and et. al., 2020).
Balance sheet: It states the financial position of businesses in which manager of Carnival
classify the assets, liabilities and equity that helps to understand what are the position of
company (Hoogendoorn, Kelso and Sinthumule 2019).
Statement to cash flows: It reveals cash inflow and outflow which arises during
accounting year. The management of Royal Caribbean Cruises Ltd classify cash flows in to
operating, investing and financial activity that helps to manage the good performance of
company. This statement helps Royal Cruises to manage income and expenses while running
business and increase productivity (Brauer, Dymitrow and Tribe, 2019).

P8 Importance and value of budgets
In Carnival Corporation & PLC financial manager is responsible for preparing budget by
involving all income and expenses that helps to perform a business effectively. The value and
importance of budgets are as defined:
 Budgets are valuable as it provide estimation and income and expenses which can occur
while providing products and services.
 Budgets helps to organise and control resources so activities and business performance
can be maintain in well manner.
 It is important for Carnival Corporation & PLC because it attracts investors and
stakeholders to invest in organisation and make it profitable.
 The manager of chosen organisation are operating business accurately by managing
budgets and resources.
CONCLUSION
HR life cycle involves different stages which is used to improve the organisational
performance and maintain the activities efficiently. Revenue management is the process of
running activities by managing funds and increasing profitability. Different types of financial
statement are prepared by managers who evaluate income and expenses and prepare budget
accordingly that helps to maintain good performance effectively.

REFERENCE
Books and Journal
Baumgartner, S. and Bansal, T., 2019. Travel and tourism: A comparative analysis of different
HRIA approaches. In Handbook on Human Rights Impact Assessment. Edward Elgar
Publishing.
Jayasooriya, S. S. W., 2019. Review on the factors influencing tourist’s impulse buying behavior
in luxury restaurants in Sri Lanka (reference to Kandy city).
Malachovský, A., 2020. Creative Tourism in Successful Destination Management as a Solution
of Systemic Crisis in Slovak Tourism. In Destination Management and Marketing:
Breakthroughs in Research and Practice (pp. 854-875). IGI Global.
Phillips, P., and et. al., 2020. The influence of geographic and psychic distance on online hotel
ratings. Journal of Travel Research. 59(4). pp.722-741.
Hoogendoorn, G., Kelso, C. and Sinthumule, I., 2019. Tourism in the Great Limpopo
Transfrontier Park: a review.
Brauer, R., Dymitrow, M. and Tribe, J., 2019. The impact of tourism research. Annals of
Tourism Research. 77. pp.64-78.
Online
Specific legislation that Carnival UK has to comply with and adhering. 2020. Available through:
<https://www.carnivalcorp.com/leading-responsibly/ethics-and-compliance>
B09903 ravi.