The Travel and Tourism Business Toolkit

Unit 4: The Travel and
Tourism Business Toolkit

INTRODUCTION
Travel can be defined as going from the one place to another that can be long distance
travel, short term or oversee and many forms of it. Travel industry consisted with various aspects
to the broader industry cater to the needs and desire of those individuals who travelled from one
part to the another in order to gain important insights. Respective industry contributes one of lot
efforts in context of economy as well as provide employment opportunities to large no. of
people. Respective report is based on TUI group which is an Anglo German international travel
and tourism organization having headquarters is in Germany. The respective report is based on
the significance of principles of revenue management and the way T&T industry apply
respective tools to generate profitability. Further it elaborates about various stages of Human
Resource life cycle in a specific job role for developing talent and prepare the performance
management plan to overcome from various issues.
TASK 1
P1 Evaluate the rationality and principles of revenue management in travel and tourism industry.
Revenue management
Revenue management refers to the application related with the disciplined analytics
which predicts or forecast the consumer behaviour at a small level to optimise the availability of
product in order to maximise revenue in positive manner. In context of TUI Group they by using
respective tool manage their resources in order to best utilise for gaining effective results.
Significance and principles of Revenue management in specified industry
Significance
Revenue management plays very much crucial role for organisation. It is categorised as
an offering the perfect room at the perfect cost at right time in order to achieve loyalty of
consumers (Baumgartner and Bansal, 2019). In reference to Travel and tourism industry where
revenue management extended up to the conferences, restaurants and other kinds of recreational
facilities such as spas and golf courses as they provide various services under one roof. In T&T
industry key components are exceptionally perishable in nature if the hotel rooms and other
services not sold till tonight then it can not be hold in stock so it can be stated that owner of
tourism services must guarantee revenue achieved sale's streamlined. To enhancement in revenue

for earning profits is very crucial to acknowledge importance of managing revenue in T&T
industry.
Principles
It includes:
Market segmentation- As per the principles of revenue management the customers
segmented into two parts that are qualified and non qualified (Brauer, Dymitrow and Tribe,
2019). In that aspect segment of market rely on various attributes of consumers that enables an
organisation in order to enhance their revenue. In context of TUI Group they frame strategies in
order to enhance revenue.
Historical demand and way of booking- To generate higher revenue in context of TUI
Group they forecast demand on basis of historical data and booking patterns of their potential
consumers in order to relate their future needs appropriately. So in context of TUI Group by
respective principle organisation can be build one of their best products and services in order to
gain a competitive advantage in the market.
Tools of revenue management in T&T industry- In respective industry no. of tools
applied in order to generate profitability and market share that are as follows:
Capacity utilisation- By using respective tool organisation able to predict the
requirement of facilities so that consumers can gain potential outcomes. In context of TUI group
they forecast demand of consumers in order to reap important outcome from them.
Allocation of discount- Respective tool of revenue management used by organisations in
order to offer discounts and other kinds of advantages so that consumers can take buying
decisions promptly. In context of TUI Group they provide vouchers to their consumers so that
they can attain high level of profitability.
P2 How the T&T industry applies the revenue management tools to generate profit.
In an organisation there are various tools of managing revenue that should be applied in
order to gain potential outcomes (Bruno and et. al., 2019). There are various tools one of them
are pricing strategy that are crucial for both business as well as consumers in order to sell
maximum services to ultimate consumer in positive manner. Here are the impact of pricing
strategy on revenue management of a firm with their principles with applicability within
organisation:
Impact of differentiated pricing strategy on revenue management