Carnival Corporation: Revenue, HR, and Legal Business Report

This report delves into the business toolkit of the travel and tourism industry, focusing on Carnival Corporation & PLC. It begins by examining the principles of revenue management, including forecasting, customer analysis, pricing strategies, and optimization, and their application within the cruise line sector. The report then explores the human resource life cycle, specifically for a Food & Beverage Manager, detailing stages like recruitment, education, motivation, evaluation, and celebration, along with their importance for talent retention and development. Furthermore, it develops a performance management plan to address coordination issues among cruise employees. Finally, the report analyzes financial statements, budgets, and the impact of legal and ethical considerations on business decision-making within the industry, providing a comprehensive overview of key operational aspects. The report concludes by emphasizing the importance of these tools for maximizing profits and ensuring effective business management.

The Travel and
Tourism Business
Toolkit

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Rationale and principles of revenue management for travel and tourism industry...............1
P2 Investigate how a specific sector of the travel and tourism industry applies revenue
management tools to generate and maximise profit....................................................................2
TASK 2............................................................................................................................................3
P3 Review the different stages of the HR life cycle applied to a specific travel and tourism job
role and their importance for retaining and developing talent....................................................3
P4 Develop a performance management plan.............................................................................5
TASK 3............................................................................................................................................6
P5 Explore specific legislation that organisations in the travel and tourism industry have to
adhere to......................................................................................................................................6
P6 Using specific examples, illustrate how company, employment and contract law has a
potential impact upon business decision-making in the travel and tourism industry.................7
TASK 4............................................................................................................................................7
P7 Explore the different types of financial statements ...............................................................7
P8 Explain the importance and value of budgets for controlling business performance and
identifying variances...................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business toolkit refers to the set of tools needed by an enterprise while launching a new
business venture in market. These tools act as prerequisites for the initiation of a new enterprise
and provide assistance in turning ideas into actions. Travel and Tourism industry is broad in size.
This report is based on Carnival Corporation & PLC, a British – American company which
basically operates cruise (Mowforth and Munt, 2015). This company is presently considered as
largest travel leisure organisation worldwide. The present report will provide brief description
about Key principles of revenue management in tourism industry. Further, it will assess the ways
by which human resource life cycle can be managed. Along with this, it will define potential
impact of legal ethical consideration within the same industry. At last, this report will provide
deep knowledge about management of budget and maintenance of financial records and
statistical data of Carnival Corporation & PLC.
TASK 1
P1 Rationale and principles of revenue management for travel and tourism industry.
According to the thoughts of Urry, (2016). Revenue management in Cruise line industry
is considered as the concept which allow manager or cruise operator to evaluate demand of
customers and match it with requirement availability within the decided prices so that hotel could
gain its financial results. With reference to the present scenario, it has been analysed that the new
assistant manager of Carnival Corporation & PLC is required to enhance their knowledge on
revenue management in tourism industry and its core principles which will help them in handling
work of this specific zone in effective manner. Some of the main principles of revenue
management and their importance in travel and tourism industry are defined as below:
Forecast: It involves prediction of revenue which is expected by Carnival Corporation &
plc. This is done by analysing previous revenue records of company on the basis of which
finance manager forecast future revenue of company. On the other hand, negative aspect of this
principle is that it does not provide accuracy as prediction of future might exclude environmental
changes.
Customer: The next principle of revenue management helps the manager of Carnival
Corporation to predict customers' demands in order to maintain availability of minimum stock
for high growth of revenue. Whereas, there are probable chances that taste and preferences of

customers might change with the changing time which could affect work of revenue manager as
their predicted planning might fail.
Pricing: Pricing principle of revenue management states that it is required by manager to
set price of their product in such a manner which could recover expenses of Carnival
Corporation & plc and also generate adequate amount of profits. At the same time, negative
impact of this principle states that fluctuation in tax rate or interest rate might not match with the
pre-set prices.
Optimization: This principle of RM is based on optimisation which states that manager
of Carnival Corporation & plc is required to utilise available resources in an effective manner for
generating desired revenue for the company. But this effective utilisation can even result in
negative impact as sometimes optimisation can lead towards low resource usage which
ultimately affects poor quality of produced goods or services.
As per the above specified principles of revenue management in travel and tourism
industry, it can be said that all of them are holding high position in Carnival Corporation & plc.
It has been that main rationale of revenue management is to maximise positive revenue for the
company so that their profitability can also be enhanced. Along with this, it can be said that on
one side all of these principle helps company in effective management of revenue but at the same
time it also consumes time of manager which could cost to company in negative manner.
P2 Investigate how a specific sector of the travel and tourism industry applies revenue
management tools to generate and maximise profit
As per the thoughts Höpken, (2015), revenue management plays an essential role in the
business growth of every organisation. In context to Carnival Corporation & plc, it can be said
that revenue management department of this company belonging to cruise line sector follows
some specific tools which helps them in maximising their profitability ratio in effective manner.
Some of these basic tools of revenue management which are used by its manager are defined as
below:
Book Engine: It is the technological tool of revenue management which helps manager
of Carnival Corporation & plc in handling direct sales on cruise. The specific tool is basically
used for handling international bookings or reservations as it is capable of dealing with
international currency as well. Along with this, book engine also avoids duplication of booking

for unavailable area. Thus, it improves profitability of Carnival Corporation & Plc by managing
revenues effectively and also reduces work of its manager.
Rate Shopper: It is the another tool which is basically used by manager to evaluate
pricing strategy of their competitors’ company. With reference to Carnival Corporation & Plc,
the company is using this tool to compare on the spot prices of competitor for similar kind of
service or room type. This application also allows manager in improving their sales record and
reducing efforts of marketing team. As a result, they generate more profits for Carnival
Corporation & plc.
Differentiation pricing strategy states that company can sell similar kind of product to
different consumer on completely different prices. In context to Carnival Corporation & plc, its
revenue manager can use differential pricing strategy as it allows the company in adjusting their
prices with changing situation in cruise line industry.
TASK 2
P3 Review the different stages of the HR life cycle applied to a specific travel and tourism job
role and their importance for retaining and developing talent
Human resource department plays an essential role in organisation as it provides best
qualified and experienced employee to company which will work collaboratively for attaining
common goals and objective in quick manner. Therefore, it is first and foremost skills of HR
manager to manage HR life cycle by following HR strategy of company. On the basis of this,
different stages of HR life cycle and importance for Food & Beverage Manager of a cruise ship
has been defined as below:

Illustration 1: Employee life-cycle
(Source: Employee life-cycle, 2019)
Recruitment: At the first stage, HR manager will recruit Food & Beverage Manager on
basis of skills, talent, experience and qualification. This is done by firstly doing strategic
planning of the organisation that how many employees are actually required for the growth of
company (5 Stages of the Human Resources Life Cycle in Need of Improvement, 2019). This
stage brings pool of candidates to the company with fresh talent. This will develop talent of
existing employees too.
Education: After recruiting new employee, it is the responsibility of manager to educate
Food & Beverage Manager about specific job role, expectation of company, make employee
familiar with workplace and colleagues, conduct induction session for Food & Beverage
Manager where values, mission and vision will be shared with them (Sun, Ryan and Pan, 2015).
The company is providing training to its hired employees which develops their talent contributes
in achieving targeted goals and objective of company.
Motivation: Next stage of this cycle suggests manager to motivate hired employee that is
Food & Beverage Manager at every stage in order to retain them for longer period of time.
Importance of this stage for talent management can be handled with example: if employees will
not get motivation then their performance can decline.

Evaluation: After this, manager will evaluate performance of Food & Beverage Manager
by taking regular based feedback from the selected person and other employees who are working
with them. This evaluation will help manager in identifying requirement of training which will
improve performance of employee. Manager of this company identifies core skill of work can be
developed by conducting training for employees (Chang, Backman and Chih Huang, 2014). This
saves cost of company and also helps in utilising talent of employees effectively.
Celebration: Last stage of HR life cycle guides assistant manager to appreciate Food &
Beverage Manager by recognising them for their hard work. This stage is highly important as it
raises interaction level of employees develops team spirit among them.
It is recommended that business should render training sessions to employees in order to
continuously develop and enhance their skills. Further, it has also been suggested that company
should recognise and reward those employees who have performed well as per the targets
stipulated by management.
P4 Develop a performance management plan
It is essential for every business organisation develop an effective performance
management plan so that employees can easily their job roles without getting distracted from any
other influence. Usage of this plan also allows them in overcoming different challenges at
workplace and helps in attaining organisational goals effectively (Cohen, 2017). With reference
to the current case, it has been analysed that the Carnival Corporation & PLC. is facing issues
related to waiters on cruise line. Along with this, it has also been identified that there are
numerous of employees in this sectors faces problems related to co-ordination of their team
mates as well as team leaders. This issue associated with employees might result in increase of
staff turnover rate in the company. With regards to Carnival Corporation & PLC., performance
management plan of this company is described as below:
Assess current performance management process:
It is considered as the essential factor which determines overall strength of the company
in terms of resources, man and material (Budeanu and et. al., 2016). This also helps them in
analysing current management process for finalising mission of Carnival Corporation & PLC so
that goals and objectives of the company can be developed and fulfilled effectively without
facing much issues.
Set objectives and Goals:

It is the next step of performance management plan in which manager of Carnival
Corporation & PLC is required to develop effective goals and objectives according to the
mission. In this, management also focuses on coordinating and collaborating with employees so
that they can work effectively for the company and place their maximum efforts in attaining
organisational goals and objectives.
Create and action plan:
After developing feasible aims and objective, it is essential for manager of Carnival
Corporation & PLC to create an effective action plan so that scope of business performance can
be improved. In this, the company bifurcates roles and responsibilities of all cruise employees
according to their skills so that they can easily attain their organisational objectives (Bayliss and
et. al., 2014).
Keep track of progress:
The last stage of performance management plan is to effectively evaluate performance of
employees. With reference to Carnival Corporation & PLC, it is essential for manager of this
company to monitor employees performance and also check their productivity level so that they
identify gap between their present and previous performance. The step also aware manager about
the complications which are being faced by management team so that appropriate initiative can
be taken from management side for their improvement (Sun, Ryan and Pan, 2015).
On the basis of above described performance management plan, it has been identified that
management team of Carnival Corporation & PLC can improve performance of their employees
with its uses. It will also help company in engaging employees especially food and beverage
section (waiter and waitress). As a result, it will reduce problems faced by these employees and
contribute in their personal as well as organisational development. Here, managerial team can
give recognition and rewards to employees in order to reduce their frustration as well as
motivates them to place higher efforts in organisational work.
TASK 3
P5 Explore specific legislation that organisations in the travel and tourism industry have to
adhere to
Every industry has its own rules and regulations which are required to be adhere by them
so that they can remain free from legal obligations in future. In context of travel and tourism

industry, it has been analysed that the industry is required to comply all norms as well as
regulatory frameworks in order to perform work within legal parameters (Du Cros and
McKercher, 2014). It is important for Carnival Corporation & PLC to follow some below stated
legislation and regulations at the time of executing their work within travel and tourism industry:
The Tourism Act 2011: This act was developed in the year 2011 for managing,
executing, developing activities within the tourism industry especially service sector. In context
to Carnival Corporation & PLC, it is essential for the company to adhere this law at the time of
regulating their cruise activities across the world.
Food Safety Act 1990: This law is associated with food related regulations which covers
safe and hygiene food & beverage, adequate quality and labelling of food products (DeLacy and
et. al., 2014). In context of Carnival Corporation & PLC, it is important for its managers to
ensure that all kind of food and beverages which are offered in the cruise fulfils the criteria of
legal parameters of this law.
P6 Using specific examples, illustrate how company, employment and contract law has a
potential impact upon business decision-making in the travel and tourism industry
Carnival Corporation & PLC is required to adhere employment as well as contract law in
order to sustain longer within the travel and tourism industry. Adherence of these laws direct
places impact over decision making process of the company as they are required to consider all
elements while taking their decision towards every department (Höpken and et. al., 2015). For
instance: HR manager of this company is required to provide safe, discrimination free working
environment according to the employment act so that they can work longer in the company. In
order to adhere this law, it is essential for them to take bias free decision so that employees feel
free and comfortable in the company. Thus, it can be said that appropriate adherence of these
laws helps company in executing their operational activities ethically in the company.
TASK 4
P7 Explore the different types of financial statements
Financial statement is a statement which includes all the essential data and information
which is related to money invested or earned by the organisation for conducting the business
function effectively (Hunt and et. al., 2015). In order to define the financial position as well as
performance of the company, various types of financial statements are used by management

team, lenders and by creditors so that they will be able to identify efficiency and effectiveness of
the business organisation:
Income statements: In reference of Carnival Corporation & PLC, accounts managers of
the organisation create income statement for a specific period of time in order to know their loss
and profit. It is the statement which shows the actual position of the company. Income statements
of the company shows total income and expenses of the organisation within a specific time
period.
Balance sheet: It is a financial statement which includes all the information in detail
which includes assets and liabilities. In the present context of Carnival Corporation & PLC , it is
the statement which includes both cash out flow as well as cash in flow of the company. This as
a result, assist the management team in order to examine their current financial position.
P8 Explain the importance and value of budgets for controlling business performance and
identifying variances
Budget refers to a financial plan which is prepared by the management team of the
company for a specific time period. It is a written document which acts as a backbone of the
company as without having specific funds, various business activities can't be performed in an
effective manner. In the present context of Carnival Corporation & PLC, top management
authority of the company prepare budget plans so that they will be able to perform their business
activities successfully and effectively (Lamsfus and et. al., 2015.). With the help of effective and
proper budgets, company will be able to get various benefits. These benefits help the
organisation in order to perform their functions in an effective manner and produce positive
outcomes. There are few values and importance of budget which are as follows:
 Budget plays very important role in each and every organisation as it will assist them
how to perform their business functions in an effective manner. In the present context of
Carnival Corporation & PLC, managers of the company prepare budget plans every year
so that they will be well prepared to face any kind of adverse situation in a positive
manner.
 With the help of proper and effective planning of budget, company will be able to gain
different benefits. In the present context of Carnival Corporation & PLC, managers of the
company will be able to check each and every activity performed by them.

CONCLUSION
On the basis of above described report, it has been identified that travel and tourism is a
vast industry which provides high contribution in the organisational development. It has been
identified that travel and tourism toolkit holds important role in success of this sector as it
supports in executing organisational activities effectively. In order to enhance efficiency of this
sector it is essential for its manager to hire skilled workforce who can perform organisational
work effectively with their smart decisions. It can be said that by using HR life cycle Human
resource managers can easily bring fresh talent in the company which will later contribute in
gaining competitive advantage. Along with this, it has been identified that business managers can
easily manage organisational resources with the usage of revenue management plan.
Organisations belonging to this industry are required to adhere equality act and human right act
in order to sustain longer at marketplace with the support of employees.

REFERENCES
Books and Journals
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and
new tourism in the third world. Routledge.
Urry, J., 2016. Mobilities: new perspectives on transport and society. Routledge.
Höpken, W., and et. al., 2015. Business intelligence for cross-process knowledge extraction at
tourism destinations. Information Technology & Tourism. 15(2). pp.101-130.
Sun, M., Ryan, C. and Pan, S., 2015. Using Chinese travel blogs to examine perceived
destination image: The case of New Zealand. Journal of Travel Research. 54(4).
pp.543-555.
Bayliss, J. and et. al., 2014. The current and future value of nature-based tourism in the Eastern
Arc Mountains of Tanzania. Ecosystem Services. 8. pp.75-83.
Budeanu, A. and et. al., 2016. Sustainable tourism, progress, challenges and opportunities: an
introduction.
Chang, L. L., F. Backman, K. and Chih Huang, Y., 2014. Creative tourism: a preliminary
examination of creative tourists’ motivation, experience, perceived value and revisit
intention. International Journal of Culture, Tourism and Hospitality Research. 8(4).
pp.401-419.
Cohen, S., 2017. Decline, renewal and the city in popular music culture: Beyond the Beatles.
Routledge.
DeLacy, T. and et. al., 2014. Green growth and travelism: Concept, policy and practice for
sustainable tourism. Routledge.
Du Cros, H. and McKercher, B., 2014. Cultural tourism. Routledge.
Höpken, W. and et. al., 2015. Business intelligence for cross-process knowledge extraction at
tourism destinations. Information Technology & Tourism. 15(2). pp.101-130.
Hunt, C. A. And et. al., 2015. Can ecotourism deliver real economic, social, and environmental
benefits? A study of the Osa Peninsula, Costa Rica. Journal of Sustainable Tourism.
23(3). pp.339-357.
Lamsfus, C. and et. al., 2015. Going mobile: Defining context for on-the-go travelers. Journal of
Travel Research. 54(6). pp.691-701.
Online
5 Stages of the Human Resources Life Cycle in Need of Improvement. 2019. [Online]. Available
Through: <http://hrssolutions.com/5-stages-of-the-human-resources-life-cycle-in-need-
of-improvement/>