Travel and Tourism: Revenue, HR, and Legal Aspects

Desklib provides past papers and solved assignments for students. This report analyzes Blue Air's business strategies.

Travel and Tourism

Table of Contents
Introduction....................................................................................................................2
LO1.................................................................................................................................3
P1 Discuss the rationale and principles of revenue management for the travel and
tourism industry.......................................................................................................3
P2 Investigate how a specific sector of the travel and tourism industry applies
revenue management tools to generate and maximize profit..................................4
M1 analyse the impact of differentiated pricing strategies on revenue
management in a specific sector of the travel and tourism industry.......................5
D1 Critically analyse the principles of revenue and its application in a specific
sector of the travel and tourism industry.................................................................5
LO2.................................................................................................................................6
P3 Review the different stages of the HR lifecycle applied to a specific travel and
tourism job role, and their importance for retaining and developing talent............6
P4 Develop a performance management plan for a specific travel and tourism job
role, applying techniques to resolve negative behaviour and to overcome issues of
staff retention...........................................................................................................8
M2: Evaluate the importance of the HR life cycle in relation to strategic talent
management and overcoming issues of staff retention.........................................10
D2: Make valid judgments and recommendations on how HR processes and
documents can be improved for effective talent planning throughout the HR
lifecycle.................................................................................................................10
LO3...............................................................................................................................11
P5 Explore specific legislation that organisation in the travel and tourism industry
have to adhere to....................................................................................................11

P6 Using specific examples illustrate how the company, employment and contract
law has a potential impact on business decision making in the travel and tourism
industry..................................................................................................................12
M3 Using specific examples, examine the potential implications of regulations,
legislation and standards on decision making in the travel and tourism industry. 13
D3 Critically reflect on the potential impacts of regulations, legislation and
ethical principles on decision making in the travel and tourism industry.............13
LO4...............................................................................................................................14
P7 Explore the different types of financial statements and reporting mechanisms
for organisations within the travel and tourism industry.......................................14
P8 Explain the importance and value of budgets for controlling the business
performance and identifying variances.................................................................15
M4 Interpret financial statements and reports for organisations within the travel
and tourism industry..............................................................................................16
D4 Evaluate business performance based on financial statements reports for
organisation within the travel and tourism industry..............................................16
Conclusion....................................................................................................................17
References....................................................................................................................18

Introduction
This assignment shows the travel and tourism industry and there finance and
recruitment activities of the company. The company is Blue Air which is an airline
company providing the services to the passengers of Rome. This company provides
the products and services through the revenue management systems. The recruitment
and human resource practices of the company also show that the flights require
extensive training and guide. The financial reports provide the company shareholders
and customer to know about the performance of the company and their profitability.

LO1
P1 Discuss the rationale and principles of revenue management for the travel
and tourism industry.
The revenue management of the travel and tourism industry includes the process that
helps in managing the activities of the business after bearing the costs. The revenue
management of the Blue Air company shows the benefits and costs of the business in
the management system. The principles of the revenue management are:
 Market segmentation: The market segmentation of the business helps in taking
revenge for the different segments of the company. The company have different
revenue management for different segments of the customers. The customers of
the market depend on different customer preference and demands.
 Historical demand and booking patterns: The revenue management of the
company depends on the past demands and booking patterns of the customers in
the airline industry. The Blue Air uses the history of their passengers and clients
to make the revenue management reports and plans. The demands of the airline
industry keep changing with time and prices of the flights(Denizci Guillet and
Mohammed, 2015).
 Displacement analysis and Demand forecast: the revenue management should be
based on the past records of the company and customers. The change in the
demands can be monitored and corrective actions can be taken to overcome the
changes. The revenue management is affected by the sales in the past and
expenses can be estimated.
 Overbooking: the airline industry may have overbooking and no show problems
in their company. This can be avoided with proper revenue management. The
company has different expenses and costs for overbooking can be bear effectively
by the company.
 Information system: The information system and technology used in the Blue Air
also helps in taking the revenue management of the airline industry effectively.

The information systems can predict the costs and take the past account to
effectively produce better plans and strategies.


P2 Investigate how a specific sector of the travel and tourism industry applies
revenue management tools to generate and maximize profit.
The different revenue management tools for the travel and tourism industry are:
 Capacity utilization: this revenue management tool helps in predicting the
number of visitors a destination can visit. The tool helps in achieving the future
number of passengers on the flight with the help of the data and factors affecting
the company.
 Demand forecasting: the revenue management tool of the demand forecasting
helps in estimating the future demand of the services of the company in the
management. It helps in deciding the sales and customer services in the company.
 Discount allocation: the target group of the customer and the factors which help
in attracting the customers also helps in maintaining the revenue management of
the company. The discount allocation helps in analyzing the customers depending
on the factors like season, climate and environment(Legohérel, et, al., 2013).
 Duration control: this tool helps in predicting the duration of the customers in the
company during the specific time period. It also includes the controlling the
number of revenue in the specific time frame which shows the expenses and
revenues of the company.
The application of revenue management tools helps in achieving the maximum profits
and revenue for the company. The company can take the corrective and effective
decision for the improvement of the business management. The management of the
company helps in realizing the variances and issues of the company to take the proper
action. The company can also help in achieving the goals and objectives of the
company.

M1 analyse the impact of differentiated pricing strategies on revenue
management in a specific sector of the travel and tourism industry.
The differentiated pricing strategy in the airline industry will help the company to
earn the profits from a specific section of the target market. The target of the Blue Air
company is to achieve the maximum profits from the better section of the society. The
pricing differentiation is carried out on the basis of the different factors on which the
customers are divided. The customers can be divided on the basis of product form,
time pricing, image pricing, location pricing etc. These bases of the pricing
differentiation help in achieving the different revenue from customers. The
differentiated pricing is explained as charging different prices from a different group
of customers. This technique of pricing can help the Blue Air to enjoy higher profits
from the upper class and corporate customers. The company can offer lower prices of
the tickets to the middle class(Abrate and Viglia, 2016).
D1 Critically analyse the principles of revenue and its application in a specific
sector of the travel and tourism industry.
The principles of revenue management help in achieving the goals and objectives of
the company better with the help of the following benefits:
 The principles of revenue management help in studying the future and past of the
business performance in the airline industry.
 The Blue Air can use the data of the revenue management to improve the cost and
expenses of the company and take proper planning and development of the
actions(Wang, et, al., 2015).
 This can help the management teams to take better decisions and interactions
with the employees. The employees can know the problem areas and variances.
 The plans and strategies of the revenue management can be accessed at any time
to make the critical decisions in the difficult situations.
 These principles help to know the demand fluctuations and service quality of the
company.

LO2
P3 Review the different stages of the HR lifecycle applied to a specific travel and
tourism job role, and their importance for retaining and developing talent.
The human resource life cycle in Blue Air defines the time of an employee within the
company along with the significance of the human resource department for every
stage of the HR lifecycle. For a pilot, the human resource life cycle includes mainly 4
stages.
Recruitment and on-boarding
For a pilot, Blue Air follows a unique recruitment process which involves the stages
of online application, tests and review of those applications on the basis of the tests.
An online application form is required filling by the candidate, after meeting the
minimum requirements, including the personal details, resume and a set of numerous
questions. Certain tests are conducted by Blue Air named personality tests, skills for
English, Physics and Mathematics; logical deduction and aptitude tests. The received
applications are reviewed on the basis of the test results and the selected candidate has
required the medical examination (O'Bryan, and Casey, 2017). On-boarding defines
as the methodology of setting up the recruited candidate as a new employee in the
company system. The importance of recruitment process lies in the fact that it assists
in employing the correct and right individual for the company.

(Figure: Recruitment Process for Pilot in Blue Air)
(Source: By Author, 2019)
Career Planning and Orientation
At this stage, the process of making the selected pilot a member of the company's
staff is conducted in Blue Air by a clear definition of job roles and responsibilities and
development of relationships with the supervisors and other co-workers. Further, a
discussion is set out between the new pilot and associated supervisors regarding the
determination of long-term goals and objectives within the company. It helps in
making the new employee comfortable with the job and people along with improving
employee retention and boosting employee morale (Nagendra, 2014).
Career Development
This phase involves the opportunities for employee training and growth for making
him more responsible. It is a significant phase in a pilot's life cycle in Blue Air since it
provides assistance in maintaining employee engagement in the company all over the
time. Here, the responsibility of the human resource department is to help the new
employee in attaining his long-term goals.
Transition

The transition phase terminates the life cycle of an employee within the company. The
employees may leave due to lay-off or retirement or shift to grab the other
opportunities. The employee transition in Blue Air is done by following the
procedures and an exit interview (Nagendra, 2014). The transition stage helps in
providing opportunities and place to the new talents for the company.
P4 Develop a performance management plan for a specific travel and tourism
job role, applying techniques to resolve negative behaviour and to overcome
issues of staff retention.
(Figure: Performance Management Plan of Blue Air for Pilot)
(Source: By Author, 2019)
The performance management plan of Blue Air for the pilot initiates with the
planning process in which the SMART objectives are established. The next step is the
continuous monitoring of the pilot performance as well as the progress. As the results
of the previous phase, the pilot will be provided training and development for
improving their abilities and skills. Next step involves the periodical rating to the pilot
for performance judgment (DeNisi, and Murphy, 2017). This plan further consists of
the rewarding program for the pilots having highest ratings that will motivate the
pilots.