The Travel and Tourism Business Toolkit

This document provides an overview of the revenue management principles, human resource stages cycle, performance management plan, legal framework, and financial statements in the travel and tourism industry. It discusses the rationale and principles of revenue management, specific sectors that imply revenue management tools, the human resource life cycle, performance management plan for travel and tourism managers, legal and regulatory framework, and various types of financial statements and reporting mechanisms. The document is relevant for students studying travel and tourism management.

The Travel and Tourism
Business Toolkit
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAINBODY....................................................................................................................................3
P1 Revenue management rationale and principles of revenue management regarding travel as
well tourism industry..................................................................................................................3
P2 Describe a specific sector of the travel as well tourism industry that implies revenue
management tools to generate and maximize profit....................................................................4
P3 Human resource stages cycle ................................................................................................5
P4 Performance management plan for travel and tourism manager...........................................6
P5 Describe the legal and regulatory framework regarding travel and tourism sector.............7
P6 Employment and contract law influence on decision-making..............................................8
P7 Describe the various types of financial statements as well as reporting mechanism for
firm and the travel as well as tourism industry..........................................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Tourism is considered as the social, economical and cultural phenomenon that can entails
the movement to the persons to the place or place outside their usual place or environment.(Vu,
2015). Present report lay focuses on the Thomas Travel group Plc was formed by the Thomson
corporation. Its headquarter is in London ,United kingdom. It was founded in 1965 while defunct
in 2002. Report also focuses on the key principles of revenue management of the firm. Human
resource life cycle with the human resource strategy. It also focuses on the influence on the legal
as well as ethical consideration of the tourism business. Furthermore, it focuses on that how to
manage budgets as well as maintains financial standards and records.
MAINBODY
P1 Revenue management rationale and principles of revenue management regarding travel as
well tourism industry
Revenue Management starts within airline industry as when the firms founds different
ways to anticipate costumer demands so that it can introduce dynamic pricing. It is implemented
for the industry where costumers are willing to pay the different prices regarding the same
product, also product must be sold before a certain point of time and also a certain amount of
that product can be sold (Ammirato, Felicetti, and Della-gala, 2015 ).
It enables the TUI to adopt a data- driven approach to the decisions about the selling as it can
assure the informed decisions that can be made to derive the upwards revenue also it is
concerned with the predicting demand as well as optimizing pricing as well as availability
within an effort to encourage the revenue.
Different pricing strategies on forecast
It is the most vital pricing strategies regarding TUI of the master within the use of forecasting to
set the pricing that are based on the anticipated demand. It is crucial that the TUI destination rate
being charged as per the demand. High the demand,high will be its pricing. Occupancy revenue
is known as the Robust forecasts' strategy that relies upon the accurate record being kept within
Historical Data. Also, the destination rates as well as average spend per place that can be
providing specifically useful. Also, it is crucial to make use regarding data that can be already in
the books. For examples reservations and also wider tends of market ( Khuong, and Huong,
2016).
Price per segment
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One of the most crucial pricing strategies is known as the price per segment as this ca be offered
the same product at various prices to the various types of the consumers.
Discount codes regarding the direct bookings.
To boost future direct booking one of the effective strategy that can ban some pricing incentives
as it is considered as one of the effective strategies that able to use the discount code. So that
the when the guests visit the TUI after booking by a third party they could offer a discount
code regarding any future direct booking as they can make with the consumers .It also provides
the dual benefits of repeat business as well as encouraging them so that they can book directly
as if they can opt to stay within the TUI again within the future (Becken and Khazai, 2017) .
Offer a package
It is known as the another solid option that can maximize revenues so that it can creates
packages enables consumers to pay more than just a place ,also the additional services,items as
well as product can be featured within packaging details that can also includes meals, bicycles
and other equipments that are used during the Travelling. However, the travel and tourism
company Like TUI provides the sales at the off-season and also apply high prices on the High
season (Alfaro Navarro and et.al., 2019 ).
P2 Describe a specific sector of the travel as well tourism industry that implies revenue
management tools to generate and maximize profit
Revenue management is plays a crucial role in assuring that target consumers are offered the
best price guarantee as in today's world leveraging price is everything but ta the same time value
based pricing also warranty the profitability of business while at the same time it can offer the
lowest pricing strategy within market.
Discounts / special deals as an options
Apart from the profitability and beating market competition the management regarding revenue
management also spreads business strategy for example that can be improved the customer
satisfaction. As it can be accomplished with by providing the discounted process as well as
specialized deals sung the holiday or vacation season for example Easter. Thus it is considered
as the short term strategies that can mostly covers a campaign that is sporadic campaign as it is
crucial; to communicate more effectively to the consumers that can be avoided the discrepancies
while resuming the normal prices (Morais, Cunha and Gomes, 2019).
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For examples ,if a firm like TUI offers a special deal then the communication should be done to
the partners of the Firm TUI and also the consumers to get the maximum profit or maximum
ROI ( Return on investment). Here also the lack of communication or miscommunication could
spoil the long term of the agent's efforts. Here the revenue management team of the TUI is then
tasked with the guarantee regarding pricing parity that means that prices that they can receive
from the TUI firm are lower or similar than those gives by the firm itself as well as other
booking sites.
For examples the revenue management if the room gets empty for a night thus by the help of the
revenue management it enables the hotel to fill the room by targeting various customers with
various rates. While done correctly a hotel can maximizes ADR that is called as the avarge
daily rates from the top of its costumers as well as also maximize occupancy with the more
discounted rated that can be untapped from the market segments (Hawkins, 2015).
P3 Human resource stages cycle
There are four stages of the human resource cycle model for the tourism manager such as
mention below
Recruit
First stage of the life cycle begins with the life cycle starts before they can employ by the TUI
firm as growing the business can be begun through the start of the recurring hence the manager
of the TUI can be appointed as there are various candidates came for this job role. As recruitment
can be done through the interview process so that right person can be selected there is also
written assignment test or also the particular question that can be asked at time.
Train
After the recruitment proves there comes a training period, Human resource manager of the TUI
firm can be provided to the person who selected as a Manager of the tourism (Boskov, 2018).
Onboarding
It is a crucial stage within the life cycle as it can decides that how long the new joinee will stay
within the TUI firm. As most of the employees can decides that the first 90 days that they will
continue the job or quit the job.
Career development
These kinds of strategies are considered as good ways to keep the top talent of the firm
engaged. By the help of the regular performance views as it aid the employees ware about how
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they are doing as well as visually see how they are progressing in their career. Here TUI firm
can discuss its performance reviews to their new manger of travel and tourism (Sifolo,
Rugimbana and Hoque, 2017 ).
Employee recognition
It also maintains the happiness of the staff members to build a loyal as well as productive team
as regular performance reviews will helps to boosts the travel and tourism manager a positive
workflow. Managers of the firm also raises the incentives of for the employee so that the
continue their career within the TUI.
Off boarding
This can be done when the employee can leave the firm it can lasso affects the other members of
the firm so it is the job of the HR manager to motivate the other employees and unable to
disrupt the entire TUI firm ( Hawkins, 2015. ).
P4 Performance management plan for travel and tourism manager
Key
responsibility
Particular
tasks
Performance
standards
How it can
measure
Outcomes Needs of
improvement
-Prepares the
information of
tourist and
visitor
-Managing
budgets
-Maintains
financial and
statistical
records
- promotes
tourism within
their region by
the help of
advertising
campaigns
- makes
presentation
on the
awareness on
the tourism.
- Provides
helps to the
tourists.
- By achieving
goals and
objectives
within
specified time
(Hawkins,
2015).
- by
comparing
results with
goals and
objectives
Need
Improvement
-By working
with other
managers
-Time
management
course also be
introduced.
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P5 Describe the legal and regulatory framework regarding travel and tourism sector
Legal framework is considered as ab broader type of system that includes rules governed as
well as regulate the making process of declension ,laws and agreement. As tourism can be
increases day by day as now consider as a large economic sector. For the regulation regarding
of tourism there are various different frameworks that can be established. Here the regulation
can be different from nation to nation as it involves some specific laws as well as there are
various international regulations (Morais, Cunha and Gomes, 2019).
Mention below various diverse law
First one is the consumer protection that can protect the consumer from any unfair misleading
commercial practices.
Health and safety legislation
The main aim of this act is to provide the consumer from the risks within the workplaces that can
be imposed certain duties as both employers and employees.
Sexual offenses – It can also be replaced through the older sexual offenses act. This is known as
child abuse ,sex racket.
Package travel regulation
Data protection act 1998
IATA
It is established within 1945 that can be known as the international air transport.
It also deals with association of the world airlines.
CAA
It deals with the civil aviation authority that deals with the protection of the costumers as they
can travel by air transport as well as this protection is provided within the United Kingdom. It is
also known as the government agency (Alfaro Navarro and et.al., 2019 ).
Health and safety commission
The act of health and safety is known as the commission regulated the act health and safety 1947
regarding the Britishers.
Under this act the employees as well as employers are come under the obligation as both of
them have the duty when have at the workplaces.
Here six to nine people are appointed through the appropriate secretary regarding state.
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HSE
It is established in 1974 as a act of the health and safety act at work .
It is considered as the single piece regarding legislation within Green Britain for the staff
members regarding health and safety.
It is also responsible for protecting of the staff members.
As per this law it can impose duties as well as obligation on the both the employee as well as
employer (Morais, Cunha and Gomes, 2019).
P6 Employment and contract law influence on decision-making
Employment law main goal is to health ,right and safety of the employees
Health and safety act of 1974
Employees of the TUI must provides the safety premises as well as machinery as they have to
ensure that the workers health unable to effected by their work. The benefits of this act is
it adds cost to the TUI's businesses that require training staff as well as spend money while
maintaining the standards. Thus, it also reduces cost within the long term as the absentees of the
employees as well as not paying compensation regarding injuries. As good health and safety is a
must need to boots the recruitment regarding good workers.
Contract law
It can be considered as the legal binding agreement ,as it is formed when both parties are agreed
on the terms and conditions listed within the contract . If one of party decides to breach contract
then the party pay fines and penalties to the other party.
Termination regarding offer
By death- If one person passes away then ti could lead the offers being terminated.
Through rejection- this is done when no agreement has been made as well as the offer has been
also rejected.
P7 Describe the various types of financial statements as well as reporting mechanism for firm
and the travel as well as tourism industry
Finance statement gives a picture regarding the performance ,cash flows and financial
positions of a business. These documents can be utilized by the Creditors, lenders, investment
community as well as management to analysis an entity. Mention below four kinds of the
financial statements.
Balance sheet
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It covers the financial positions regarding an entity at a given period of specific time and date. It
also compromised mention below three statements.
Assets
Cash flows,inventory,machinery and plant are something within a business that can be controls
and owns known as Assets (Sifolo, Rugimbana and Hoque, 2017 ).
Liabilities
It is known as something that can be owners to somebody such as bank loans, creditors.
Equity
It can represent the amount of the capital that can remains within the business as after that its
assets can be utilized so that it can pay off its liabilities. Basically it represents the difference
between the liabilities and business.
Income statement
It is also considered as the profit as well as loss statement. It reports the financial performance
within terms of the net profits or loss over a particular given periods (Alfaro Navarro and et.al.,
2019 ). It is composed of the two elements that is mention below.
Income and expenses are the two elements as sales revenues ,and dividend income came under
the income as well as wages, salaries ,depreciation and renal charges came under the Expenses.
Here the net profit as well as loss can be achieved through deducting expenses from the
income.
Cash flow
It presents the movement within the bank balances and cash over period as it is the
movement within cash flows that can be classified into the mention below statements.
Operative activities
It able to represents the cash flows form the primary activities regarding a business.
Investing activities
It also able to represents cash flow form the sales of the asset as well as cash flows other than
the inventories (Boskov, 2018).
Financing activities
It can be highlighting cash flow that can be spent or generated on repaying and raising share
capital as well as debt together with the payments of dividends and interest.
Statement of changes within equity
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It can include the profits or losses, assurances or purchases ,dividends issues. This document
cannot be usually involves when the financial statements that can be issues internally as this
information is not overall useful for the management team of TUI
P8 Describe the rationale and value of budgets of controlling business performance and
identifying variances
Every business owner have a budget that lays out the future of the firm with the course
of the activities . A budget can identifies existing capital,also gives regarding expenditures as
well as anticipated the revenue that is incoming revenues. As referring the budget the
permanence assures that the resources that can be available for the incentives that aid business
growth as well as development. It can also measure the performance against expenditure.
Budget is consider as the basis for the success regarding business as it assist with both control
of the finances and planning of the business. If there can be no control over planning,spending
is futile as well as if there can be no planning than there can be no business objectives to
accomplish (Sifolo, Rugimbana and Hoque, 2017 ).
A budget can controls the finance regarding the business of the firm TUI.
It assures that the business able to fund its commitments that are current.
It also assures the business to full fill its objectives as well as make the decisions that are
confident financial decisions and this also makes sure that the business of the firm has also
money regarding the future projects.
Benefits of the Budgets
It can also estimate plan,revenues as well as restricts any spending that is not consider as a part
of the plan.
The process of budget provides opportunities they can involve the staff ,resulting with them as
well as sharing the vision of the TUI firm.
Variance analysis.
After they star of a budget the actual outcomes of a business begin to come as the management
is start comparing actuals with the budgets. At this time the variances from the budget are
recognized as the management has to big deep to find out the various reasons regarding such
variances. This analysis can be utilized regarding maintaining a control over the business.
Such as if the budget of the TUI for sales is $ 1,00,000 as well as actual sales is around $
80,000 so the variance analysis can produce a difference regarding the $ 20,000. This can be
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more effective when the management reviews regarding variance on a trend line. If there is
sudden change within a year to year or month to month can be clearly visible as thus analysis
needed the investigations for such variances that assist the management to interprets that such
differences can be offered (Morais, Cunha and Gomes, 2019)..
Benefits
It assist to provide the competitive analysis to be provocative regarding in accomplishing their
targets and also assist identifying as well as mitigating the risks (potential) that can be build the
trust among the staff member a well as staff members to deliver what can be planned.
Identifying the concerns regarding the managerial- it can also give the insights that how well
the firm can be managed for example within the case of the TUI of purchasing ,securing the bids
that able to indicate problems or managerial problems, also negotiates volume discounts within
the department of purchasing.
CONCLUSION
From the above report it had been concluded that Revenue management target
consumers also warranty the profitability of business it can introduce dynamic pricing. Price per
segment can be offered the same product at various prices To boost future direct booking
effective strategy use the discount code. Recruit is consider as First stage of the life cycle
begins with the life cycle starts recurring of candidates through the interview process. It also
focused on the Balance sheet that covers the financial positions such as Assets, Equity, Income
statement, Cash flow, Financing activities, highlighting cash flow that can be spent or generated.
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REFERENCES
Books and journals.
Alfaro Navarro, J.L. and et.al., 2019. An approach to measuring sustainable tourism at the local
level in Europe. Current Issues in Tourism, pp.1-15.
Ammirato, S., Felicetti, A.M. and Della-gala, M., 2015. Rethinking tourism destinations:
collaborative network models for the tourist 2.0. International Journal of Knowledge-Based
Development, 6(3), pp.178-201.
Becken, S. and Khazai, B., 2017. Resilience, tourism and disasters. Tourism and Resilience;
Butler, RW, Ed.; CAB International: Boston, MA, USA, pp.96-102.
Boskov, T., 2018. Chapter IV: Empirical Estimation Between REER and Tourism-Led Growth.
Hawkins, R., 2015. Managing Ethical Consumption in Tourism. Tourism Management, 51,
p.282.
Khuong, M.N. and Huong, T.T., 2016. The Influence of Social Media Marketing on Vietnamese
Traveller‟ s Purchase Intention in Tourism Industry in Ho Chi Minh City. Journal of
Economics, Business and Management, 4(4), pp.280-285.
Morais, E.P., Cunha, C.R. and Gomes, J.P., 2019. Comparison of Portugal and Spain Tourism
websites. In Proceedings of the 33rd International Business Information Management
Association Conference (pp. 1107-1120). IBIMA Publishing.
Sifolo, P.P.S., Rugimbana, R. and Hoque, M., 2017. Deconstructing the role of Tourism
Stakeholder Engagement in the Northern Cape Province.
Sobirov, B., 2018. The concept of the tourist economic zone. Case of Uzbekistan. World
Scientific News, 98, pp.34-45.
Vu, M.C., 2015. Responsible Tourism: from Theory to Practice–a long Journey, and Implication
for Vietnam.
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