Analysis of Audley Travel's Business Toolkit in Travel & Tourism

This report provides a comprehensive analysis of the Travel and Tourism Business Toolkit, focusing on key aspects of the industry with a case study on Audley Travel. The report begins with an introduction to Travel and Tourism, emphasizing its economic significance, and then delves into revenue management, explaining its rationale, principles, and applications in the transportation sector. It further explores the HR life cycle stages for a Travel Consultant role within Audley Travel, including attraction, recruitment, onboarding, development, retention, and separation. A performance management plan is also outlined, detailing metrics and techniques. The report then examines relevant legislation, including the Tourism Act 1969 and Package Travel Regulations, and their implications for travel agencies. Finally, it addresses financial statements and the importance of budgeting within the context of a travel and tourism business.

The Travel and Tourism
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Rationale and principles of revenue management.................................................................1
P2: Investigation of a specific sector of Travel and Tourism industry........................................2
TASK 2............................................................................................................................................3
P3: Stages of HR life cycle..........................................................................................................3
P4: Performance management plan.............................................................................................4
TASK 3............................................................................................................................................5
P5: Specific legislation................................................................................................................5
P6: Impact of Company, Employment and Contract laws on business decision-making...........6
TASK 4............................................................................................................................................7
P7: Financial statements..............................................................................................................7
P8: Importance and value of budgets..........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Travel & Tourism refers to the various types of activities which people undertake for
leisure, recreation and other purposes (Augustin and Liaw, 2017). These activities are quite
important for ensuring that these people are able to enjoy by taking a part in them so that they are
able to receive value for their money. This is an industry which contributes substantially towards
the economy at the global level. For this report, Audley Travel has been chosen. It is a British
tour operator which operates travel & tourism services to a wide range of destinations all around
the world. In this report, a detailed and specific focus will be made on examining the key
principles of revenue management, assessment of HR life cycle, illustration of the potential
impact of legal and ethical considerations. Additionally, focus will be made on explaining of
managing budgets and maintaining statistical and financial records as a part of this project.
TASK 1
P1: Rationale and principles of revenue management
Revenue management refers to the application of analytics in an effective manner so that
the prediction of the consumer behaviour can be done highly effectively so that the overall level
of revenue growth can be maximized (Backer and Ritchie, 2017). The rationale for Audley
Travel in making its use is due to the following reasons-
 Analysis of the market- The use of revenue management is important from the point of
view of the organizations because this helps them a lot in analysing the market effectively
and efficiently (Disztinger, Schlögl and Groth, 2017). Therefore in this manner Audley
Travel will ensure that a proper analysis of the market can be done in the right manner by
making its use so that the trends in the market can be identified.
 Prediction of customer behaviour- With the use of revenue management the firms are
able to predict the customer behaviour easily (Figueredo and et.al., 2018). Therefore due
to this reason it has a particular level of importance. Thus Audley Travel can ensure that
it is able to predict the customer behaviour easily when it makes its use which is useful
for it from business point of view.
There are various principles in revenue management. Some of these are explained as follows-
 Market segmentation- Revenue management ensures that the market segmentation is
done by the companies. It can be done on the demographic, geographical as well as
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behavioural basis. Therefore Audley Travel must ensure that it segments the market
clearly.
 Historical demand and booking patterns- Revenue management can be used for the
purpose of assessment of the historical demand and booking patterns. Thus for this
purpose Audley Travel has to make the use of this approach effectively and efficiently.
 Demand forecast and Forecasting analysis- The use of Revenue management can be
done to forecast the demand effectively in the market. Also it can be used so that the
forecasting analysis can be done. For Audley Travel it becomes quite necessary to ensure
this in the firm.
 Pricing and Inventory management- Revenue management can be used for pricing and
inventory management also. Audley Travel can ensure that it sets the right price and
manages its inventory in a proper manner effectively and efficiently.
 Overbooking- Revenue management can be used to prevent overbooking. This can
ensure that Audley Travel is able to handle its customers in the right manner effectively
and efficiently.
 Information systems- Revenue management can be used for providing information in
the organization. Thus in this way this can help Audley Travel in making the right use of
information in the desired manner.
P2: Investigation of a specific sector of Travel and Tourism industry
In the Travel and Tourism industry there are various types of sectors. One of them is
Transportation Sector (Gössling, Cohen and Hibbert, 2018). The Transportation Sector In Travel
and Tourism Industry makes the use of the following revenue management tools-
 Central Reservation System- This system is used to keep a track of the reservations
which have been made by the different people (Ivanov, Webster and Berezina, 2017).
Therefore the transportation department of Audley Travel makes its use so that it can
keep a proper record of the reservations made by the people in different tour packages to
whom transportation facilities can be provided effectively and therefore in this way the
overall profits can be maximized.
 Revenue Management Software- The use of this software is quite essential because this
will help a lot in managing the level of revenues effectively and efficiently. The
transportation department of Audley Travel uses it so that a proper track record of the
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revenues generated is kept. Thus in this way the scope of improvement in overall revenue
enhancement can be identified. Thus the department can identify the way it can enhance
revenues leading towards maximization of profits.
 Rate shoppers- This tool is useful in revenue management because it keeps a track of the
different types of rates which can be set. The transportation department in Audley Travel
can make its use so that the comparison of the rate can be done effectively with the
competition which is present. If there are any changes that are required to be made then
they can be made quickly which will help a lot in achieving a higher-level of efficiency
and effectiveness. In this way the profits of the department can be maximized.
 Channel managers- It is a tool which can be used for keeping a track on the overall level
of inventory effectively and efficiently. In Audley Travel, the transportation department
can make the use of this tool in the right manner which will allow it to manage the stock
level appropriately. Thus its use can be made so that the overall profitability level of the
Transportation department can be enhanced.
TASK 2
P3: Stages of HR life cycle
Role- Travel Consultant
The various stages of HR life cycle can be applied in the following manner for this
particular role-
 Attraction- It its the stage where an employee is attracted towards the organization
(Kaaristo and Rhoden, 2017). Therefore when Audley Travel requires a Travel
Consultant due to the needs and requirements of its business it has to make sure that it is
able to attract the right talented people who are vying for this position.
 Recruitment- This is the stage where the actual recruitment process is carried out. Thus
in Audley Travel, the recruitment process of Travel Consultant can be started by making
the use of both internal as well as external sources of recruitment effectively and
efficiently.
 Onboarding- In this stage, the new employee joins in the organization and therefore the
process for making them comfortable can be initiated. For the role of Travel Consultant,
the HR department of Audley Travel is required to provide detailed training which will
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be quite helpful for the company in making the new people comfortable so that they can
work with maximum efficiency and effectiveness.
 Enablement- In this stage, the new employees are formally introduced to the
organization. Therefore, for the role of Travel Consultant Audley Travel has to make sure
that the new people who are joining in the company know about the company and its
mission, vision, core values and objectives which will allow them to work in the right
manner.
 Development- This stage requires the companies to ensure the development of the
workers which they have hired (Knežević Cvelbar and et.al., 2016). Thus, Audley Travel
can make sure that it provides the much-required training to Travel Consultants which
will help them a lot in achieving the goals and objectives of the company quite
effectively and efficiently.
 Retention- This stage ensures that the companies should retain the best employees which
are present with them. Therefore, Audley Travel can make sure that it retains the Travel
Consultants which have been hired by it by using the best HR tactics so that they can be
useful for the organization in the long-term.
 Separation- This is the stage where an employee separates from the organization. Thus
in Audley Travel some of the people may leave after serving their role as Travel
Consultants for a specific period of time. Therefore in this way the HR department of the
company will again have to look for talented people who can fulfil this role easily.
P4: Performance management plan
This plan is aimed at enhancing the overall level of performance by managing it in the
right manner effectively and efficiently (Kuo and et.al., 2016). For the role of Travel Consultant
the HR department of Audley Travel will be required to prepare a specific Performance
Management Plan which can be specified as follows-
Employee Name Tasks to be
performed
Techniques to be
used to measure and
evaluate
performance
Time-period for
measurement of
performance
A  Taking the The use of KPIs will 3 months
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bookings of the
customers for
tour packages.
 Managing the
bookings of the
customers for
the tour
packages.
be made to assess the
performance of A by
assessing whether the
different metrics
which have been set
for performance are
being fulfilled or not.
B  Preparing the
travel schedule
for the travel of
the customers
to different
countries.
 Assessing the
change in
schedule and
incorporating
the same.
The use of Balanced
scorecard technique
has to be made to
assess the performance
of B so that any
deviations and
variances in the
overall level of
performance can be
effectively identified.
6 months
TASK 3
P5: Specific legislation
The Travel & Tourism organizations in U.K. are required to adhere to a specific law i.e.
Tourism Act 1969. There are different provisions in this act which are applicable to the travel
agencies in the country. Audley Travel needs to ensure that it adheres to the following-
 There is a responsibility which is provided to the different organizations for the
promotion of tourism of Great Britain (Liang and et.al., 2017). Thus the travel agencies
are also covered under this scope and thus they are required to work up to their best to
provide the best services so that they can promote the tourism of the country effectively
and efficiently. Therefore in this way Audley Travel is among the various organizations
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who are required to make sure that they promote Great Britain in their different tour
packages. Through this these organizations can make sure that they are giving a boost to
the tourism of the country.
 The act aims to coordinate the different organizations which make the tourism sector
(Santos, Veiga and Águas, 2016). Thus in this way the act aims to ensure that the various
organizations who are involved in this sector can be allowed to work to provide the
desired level of satisfaction to the different customers. In this way Audley Travel has to
make sure that its customers are highly satiated with its services.
Also the organizations in this sector are required to adhere to the provisions of Package Travel,
Package Holidays and Package Tours Regulations 1992. The provisions of this law are as
follows-
 The tour operators in the country who offer tour packages for travelling to different
countries need to adhere to the laws of this act. They are required to make sure that the
packages offered by them are according to the legal requirements which have been set.
Thus in this way Audley Travel needs to make sure that its packages fulfil the
requirements.
 The tour operators in the country are also required to provide specified information to the
customers. They have to make sure that the information provided by them in the brochure
is correct. Thus in this way Audley Travel can make sure that it is able to provide
accurate and correct information to the customers thus ensuring that they are dealt with in
a fair manner.
P6: Impact of Company, Employment and Contract laws on business decision-making
The impact of these laws in the business decision-making of Audley Travel can be
specified as follows-
 Terms and Conditions- There is a requirement to ensure that the terms and conditions in
the Travel & Tourism organizations are according to the Company Laws (Unger, Uriely
and Fuchs, 2016). Therefore Audley Travel has to make sure that it is able to set its
different types of terms and conditions in tour packages according to the provisions of
Companies Act, 2006. In this way the company will be able to ensure that the overall
satisfaction level of the customers can be enhanced. For example- In Audley Travel, the
terms and conditions of the tour packages are set according to the Companies Act, 2006
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because it is an important law according to which major companies in the Travel &
Tourism sector are required to operate.
 Rules for the employees- In the companies, there is a requirement for setting the
appropriate rules for the different employees. Thus in this way Audley Travel has to
ensure that it can fulfil the requirements related to Employment Rights Act 1996 so that it
can set appropriate rules for the different employees. For example- In Audley Travel, the
workers are handled according to the provisions of Employment Rights Act 1996 so that
their various rights can be protected in an effective manner.
 Contracts in the packages- In the firms, the requirement is to make sure that the various
types of contracts are provided in the different packages. Audley Travel has to ensure that
it is able to follow the English Contract Law because the contracts of its tour packages
will be according to the provisions which are given under this law. For example- In
Audley Travel, the requirement is to ensure that the various contracts of the tour
packages are according to English Contract Law which allows the company to set the
right contracts to be followed in the tour packages so that the requirements of the law are
met.
TASK 4
P7: Financial statements
The organizations within the Travel & Tourism Industry make use of the different types
of financial statements. In Audley Travel the use of the following financial statements is made-
 Consolidated Statement of Comprehensive Income- This is the statement which shows
the calculation of the overall profits or losses (Vu and et.al., 2018). According to the
Annual Report 2018 of the Audley Travel the company suffered an overall loss of 7568
in '000 pounds. Thus this statement is quite useful as well as effective for the company in
ensuring that it is able to assess the overall situation of income in a highly effective
manner.
 Consolidated Balance Sheet- This is a statement which shows the overall level of
financial situation of the companies (Yang, Khoo-Lattimore and Arcodia, 2017).
According to the Annual Report 2018 of the Audley Travel the Net Assets of the
company stand at the value of 258,217. The liabilities of the company stand at 258,217.
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From the Balance Sheet of the company, it can be interpreted that the company's financial
situation is quite strong and thus it can be said that the company faces no risk. It can go
strong in the future.
 Consolidated Statement of Changes in Equity- This is a statement which can be used
to record the different changes which have occurred in Equity. According to the Annual
Report 2018 of Audley Travel the Total comprehensive loss was 7,568 in '000 pounds.
Thus this shows that the equity position of the company is not quite strong.
 Consolidated Cash Flow Statement- This is a statement which can be used to assess the
overall inflows as well as outflows of cash. The Annual Report 2018 of Audley Travel
states that Cash and Cash Equivalents stand at 10,750 pounds in '000 as at 31st December.
P8: Importance and value of budgets
A budget is a useful tool through which the estimation of overall revenues and
expenditures is made effectively in the organizations. It is mostly set for a time-period of 1 year.
For Audley Travel the importance and value of budgets is due to the following reasons-
 Proper planning- Budgets are quite useful for the firms because through them proper
plans can be framed by the firms specifically which can be used by the organizations. By
making the use of Budgets Audley Travel will be able to frame proper plans for short-
term, medium-term and long-term in the future. Thus in this way this can be quite useful
for the firms. Thus in this way performance can be controlled and variances can be
avoided.
 Control on expenses- Budgets can be useful for the purpose of keeping a tight control on
the overall level of expenses (Yuan and et.al., 2016). Thus by making their use Audley
Travel can identify the reasons why its expenses have increased and the techniques which
can be used by it to reduce the expenses effectively and efficiently.
 Organizing- The use of Budgets can be effective from the point of view of Organizing.
By making their use Audley Travel can organize the overall finances effectively and
efficiently. Thus in this way a better track can be kept on the level of expenses and
revenues which can be quite helpful for an organization in the future.
 Scope for improvement- With the use of Budgets there is a scope which is available for
the purpose of improvement. In this way Audley Travel can make sure that it is able to
facilitate the desired improvement in its functions like Production, HR, Finance,
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Marketing, Sales etc. It can identify problems and issues which it is facing and thus use
the Budgets appropriately so that they can be solved.
CONCLUSION
From the above report, it can be concluded that Travel & Tourism refers to a sector in
which there is a scope for different companies so that they can achieve their various types of
goals and objectives. Revenue Management has its own importance for this industry. Its tools
can be applied effectively and efficiently to generate and maximize profit. Different stages of HR
life cycle can be applied for retaining and developing talent. A Performance Management Plan
for the purpose of improving the overall level of performance. Specific laws are applicable to
this sector and the companies which are operating under it. The use of different types of financial
statements can be made for estimating the financial performance in the firms. There is an
importance and value of budgets for the purpose of controlling of business performance and
identification of variances.
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REFERENCES
Books and Journals:
Augustin, J. L. P. M. and Liaw, S. Y., 2017. Tourism competitiveness index of the Asia-Pacific
region through consistency analysis. Asia Pacific Journal of Tourism Research. 22(12).
pp.1295-1307.
Backer, E. and Ritchie, B. W., 2017. VFR travel: A viable market for tourism crisis and disaster
recovery?. International Journal of Tourism Research. 19(4). pp.400-411.
Disztinger, P., Schlögl, S. and Groth, A., 2017. Technology acceptance of virtual reality for
travel planning. In Information and communication technologies in tourism 2017 (pp.
255-268). Springer, Cham.
Figueredo, M. and et.al., 2018, March. From photos to travel itinerary: A tourism recommender
system for smart tourism destination. In 2018 IEEE Fourth International Conference on
Big Data Computing Service and Applications (BigDataService) (pp. 85-92). IEEE.
Gössling, S., Cohen, S. A. and Hibbert, J. F., 2018. Tourism as connectedness. Current Issues in
Tourism. 21(14). pp.1586-1600.
Ivanov, S. H., Webster, C. and Berezina, K., 2017. Adoption of robots and service automation by
tourism and hospitality companies. Revista Turismo & Desenvolvimento. 27(28).
pp.1501-1517.
Kaaristo, M. and Rhoden, S., 2017. Everyday life and water tourism mobilities: mundane aspects
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Knežević Cvelbar, L. and et.al., 2016. Drivers of destination competitiveness in tourism: a global
investigation. Journal of Travel Research. 55(8). pp.1041-1050.
Kuo, N. T. and et.al., 2016. Effects of tour guide interpretation and tourist satisfaction on
destination loyalty in Taiwan’s Kinmen Battlefield Tourism: perceived playfulness and
perceived flow as moderators. Journal of Travel & Tourism Marketing. 33(sup1).
pp.103-122.
Liang, S. and et.al., 2017. The relevance of mobile tourism and information technology: an
analysis of recent trends and future research directions. Journal of Travel & Tourism
Marketing. 34(6). pp.732-748.
Santos, M. C., Veiga, C. and Águas, P., 2016. Tourism services: facing the challenge of new
tourist profiles. Worldwide Hospitality and Tourism Themes.
Unger, O., Uriely, N. and Fuchs, G., 2016. The business travel experience. Annals of Tourism
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Vu, H. Q. and et.al., 2018. Travel diaries analysis by sequential rule mining. Journal of travel
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Yang, E. C. L., Khoo-Lattimore, C. and Arcodia, C., 2017. A systematic literature review of risk
and gender research in tourism. Tourism Management. 58. pp.89-100.
Yuan, H. and et.al., 2016. Make your travel smarter: Summarizing urban tourism information
from massive blog data. International Journal of Information Management. 36(6).
pp.1306-1319.
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