The Travel and Tourism Business Toolkit: Carnival Corporation Analysis

This report analyzes Carnival Corporation's operations within the travel and tourism industry, focusing on key aspects of human resource management, revenue strategies, and legal and ethical considerations. The report examines the HR life cycle, including recruitment, education, motivation, evaluation, and celebration stages, within the context of Carnival's business. It also details a performance management plan, covering planning, monitoring, developing, rating, and rewarding employees. Furthermore, the report explores specific legislation that Carnival UK must comply with, such as the Food Safety Act and employment and contract laws, along with the implications of contract, employment, and company law. The discussion extends to revenue management principles in the cruise line industry, particularly market segmentation. Finally, the report touches upon the importance of budgeting and the analysis of financial statements and reporting methods, providing a comprehensive overview of Carnival Corporation's business practices and strategies.

The Travel and Tourism
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
Activity 1.........................................................................................................................................1
Different stages of the HR life cycle...........................................................................................1
Activity 2.........................................................................................................................................2
Performance management plan...................................................................................................2
Activity 3.........................................................................................................................................3
Particular legislation that Carnival UK has to comply with.......................................................3
Activity 4:........................................................................................................................................4
Briefing on Legal and ethical consideration...............................................................................4
Activity 5.........................................................................................................................................4
Discussion of Revenue management in the Cruise Line industry...............................................4
Activity 6.........................................................................................................................................6
Explaining the importance of budget..........................................................................................6
Activity 7.........................................................................................................................................6
Commenting on financial statements and reporting methods.....................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTROThe Travel and Tourism Business ToolkitDUCTION
Travel and tourism refers to the travelling that people are don for fun which include
various activities such as sightseeing and camping. It is one of the important part that help in the
organisational growth. Travel industry is a largest industry which help in the economic condition
of the country (Dupeyras and MacCallum, 2013). This assignment is related to Carnival
corporation & Plc which is a British American cruise operator. This company is founded by Ted
Arison in 1972 and it is headquartered in Miami, Florida, US. It operates its business in
hospitality and tourism sector. This assignment will discuss about principles of revenue
management and the human resource life cycle within the context of HR strategy. Further will
discuss about impact of legal and ethical consideration and management of budgets and maintain
statistical and financial records.
Activity 1
Different stages of the HR life cycle
HR Life Cycle- Human resource life cycle refers to the stages of an employees time in a specific
organisation and the shifting roles the human resource play in every stage of this model. There
are five stages within HR life cycle, they are as following:
Recruitment- In Carnival tourism company, if the HR department hire right and qualified
candidates who help the company to increase the profit and productivity of the company and
enhance the economic condition of the firm also. To chose the capable and skilled employees,
the company can use various strategies of recruitment such as interviews, aptitude tests,
numerical ability test, and various others. These all help the manage to examine the talent for
talent management which provide guidance towards effective results and help in organisational
growth.
Education- In Carnival, when the manger of the company hire candidates for the vacant
positions, they should provide information about the rule, regulations and policies of the
organisation (Höpken and et. al., 2015). So that the new employees can easily understand about
the company very well and retain with the company till long time. For this, the HR manger can
organise orientation and induction program.
Motivation- When the employees are doing work for achieving a common goal and in a
task, in Carnival industry, the manager of the company can provide motivation to their
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employees. For this, they can organise training and development programs. They also can
provide benefits like, incentives, compensation, gifts, promotion and others. So that employees
can do their work properly and show loyalty towards the company.
Evaluation- In Carnival, the HR manager should examine all the problems and conflicts
that are related to employees when they are doing work for achieving target and dealing with
customers (Horster and Gottschalk, 2012). For this the manager should retain skilled employees
so that they can face problems and leads better outcomes that help in the business growth of the
company. By doing continuous evaluation, the manger can generate productive outcomes and
provide guidance to make improvement in those areas where there are need for it.
Celebration- It is the last stage, in it the HR manager congrats its employees for their
good and hard work which motivate them to gain more productive outcomes. In Carnival, the
manager offer some benefits like gifts, extra pay, holiday trips and various others. A smart leader
makes employees feel empowered by giving them a sense of ownership.
The role of the HR life cycle is pioneering to the business purpose and maintaining
relation with people effectively. HR life cycle is highly under priority to retain talent in the firm
and solves an issue of manpower turnover by understanding their needs or wants along with led
process of motivation to attain set desired goals or targets in an prominent manner. Although,
purpose of the HR life cycle is to maintain human regulation into a firm.
Activity 2
Performance management plan
Performance management plan- It refers to a tool which give an employee with performance
deficiencies the opportunity to succeed. It used to archive failures to meet particular job aims.
There are some stages of this model, they are as following:
Planning- It means to set performance expectations and aims for a group and individuals
to focus efforts towards a specific goals and objectives. In Carnival, the manger help in doing
proper planning so that they can face issues and resolve the problems. It help in managing staff
turnover and increasing the chances of employee retaliation. With the help of proper planning,
this organisation can smoothly operate the business of the company in tourism sector. With the
help of it it can gain competitive advantage and increase the profit of the firm.
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Monitoring- It refers to consistently measuring performance and providing ongoing
feedbacks to employees. In Carnival, the manager can analyse the activities and work which is
done by the staff and worker so that they can proper monitor the work that in which time period,
it will be complete or they are doing it in a right direction (Hunt and et. al., 2015). By continuous
monitoring, they can develop the feeling of safety and security with in the mind of customers.
Developing- In Carnival, by adopting various theories, the manger can motivate
employees and reduce the employee turn over. For example, in context of motivation, a business
associate can try to increase performance and solicit inputs of employee to reach out to the set
objectives (Jayawardena and et. al., 2013). If the organisation do development on continuous
basis then it help in avoiding issues and problems. With the help of this technique, the company
can retain the customers and increase the market share of the company.
Rating- In Carnival, the process of rating should be done by the company to increase and
uplift the image of employees within the company. In the organisation, it create positive and
healthy environment which is beneficial for the organisation growth. This tool help in the
growth of employees and for this they do hard work.
Rewarding- In Carnival, the manager of the company offer various benefits to its
employees when they perform well by using their efforts, skills and knowledge. In its benefits,
they provide financial benefits like extra pay, incentives and others, holidays trips, extra
vacations, flexible work, gifts and others. Reward provide motivation to the employees because
when the employees are rewarded for their good work, they do their work with more
effectiveness.
Activity 3
Particular legislation that Carnival UK has to comply with
There are various laws that are developed by the government for the proper running of
the company. Health and Safety act, anti discrimination act et. are some acts out of which food
act is specially adhered by the management of Carnival which is as following:
Food safety act, 1990- This act is developed in 1990 by the government of UK to provide
a structure to all the food legislations. To maintain safety and security in food is the main
concern for food business. In Carnival industry is important to make security and safety in food
by following the food legislations so that they can maintain the confidence of the customers and
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providing hygienic food according their expectations. This help the company ton run its business
in an effective manner and smoothly (Kounavis, Kasimati and Zamani, 2012). In Carnival, the
company can ensure that the food which is provided to the customers is good quality and
according to the consumers expectations. The management department of the firm can ensure
that the food and beverage are effectively promoted and packaged so that customers have clear
information about them.
Employment and contract act- Employment contract refers to a legally binding
agreement which exist between the employer and employees. This act is developed by the
government to provide protection to the rights of the employees and for states that when the
employees are dismiss for the job or work, the organisation should be provided a reasonable
notice to them (Lamsfus and et. al., 2015). If in an organisation, the company do not provide the
rights of employees to them and violated in any terms, the firm can pay huge penalties and the
brand image also affected of it. By following and maintaining laws and legislation properly the
organisation can achieve its objective and goals in set period of time and develop a great image
at market place.
Activity 4:
Briefing on Legal and ethical consideration
Here, in this assessment, various kind of ethical and legal laws such as employment,
contract & company law will be discussion along with knowing its potential impact on business
level of decision making. In context of the Carnival corporation & Plc, discussion of all three law
s are as follows:
Contract law: It is the body of law that original relates to making & enforcing agreement.
In the UK, contract is an agreement which a party can turn to a court to enforce. Also, its an area
of law that governs making contracts, carrying them out and fashioning a fair remedy when exits
a breach. This law generally signed by suppliers, investor and other stakeholder to led effective
regulation of contract signed. In context of the Carnival corporation & Plc, contract law will be
helpful to develop policies such as regulation information to the owner as per guidelines or rules
undermined. One of the core purpose of contract law is to gather led decision making into unique
manner. Potentially, contract law is qualified to maintain legal relationship between stakeholders
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and Carnival corporation & Plc to get access to material, resources and funds. Also, it would
help to takes decision effectively.
Employment law: It is the type of contract which helps to bind terms of an employment
& relationship. This mainly involves employment rights act, 1996 requires employers to provide
most employee's, within two calender period of starting work till its maturity. The purpose of the
employment law is to maintain dignity and intention to work for the Carnival corporation & Plc
and brings an effective performance. Due to employment law, expectancy of training &
development is expected to employment and also it helps to create scope for taking decision
effectively and al-least with some kind of purpose. Along with decision making, scope for clear
performance and response to the business aim is also exists.
Company law: It is the body of law governing the right, relations and conducts of person,
companies, organisation and businesses. It refers to the legal practice basically relates to or
theory of corporation. Purpose of the company law is to make legal proceedings and regulation
which is in accordance of corporate working and its pre-determined strategies. Along with this,
company is one of the eligible concept which deals with making legal proceedings to work
clearly. Due to employment law, decision making ability of given firm has risen along with clear
maintenance of roles or working of the person.
Activity 5
Discussion of Revenue management in the Cruise Line industry
In an organisation, the revenue can be generated by successfully satisfying the basic
requirements of the customers by providing products and services according to them. For travel
and tourism sector, the principles and rationale of revenue management are as following:
Market segmentation- In Carnival, the management department of the company need to
design their targeted consumer to gain more profit and generate revenue from its consumers by
providing better quality services (Morrison, 2013). With the help of segmentation, the
organisation can know about the needs of its different customers and their requirement for the
services in the market. This make the work profile easy and smooth so that the firm can achieve
its objectives in given period of time.
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Overbooking- Carnival is a British tourism sector and it provide better and quality
services to its customers. The consumers visit the website of this company frequently basis
which prove the loyalty to its customers. Various times overbooking is done in advance because
the service which is offered by it, provide satisfaction to its customers. This help the company to
generate huge profit and revenue or enhance the economic condition of the company.
Revenue management tools
Property management system- Now these days, in an organisation everything an work is
operating electrically. In Carnival, for operating the business of the company,t the management
department is required to be follow effective management system so that they can expand the
business in diversified fields. To deal with those consumers who prefer online booking, collect
data about discounts and offers, the firm should arrange systematic management. This provide an
unforgettable experience to its customers and help in gaining profit and enhancing the
productivity of the company.
Booking engine- It is an efficient tool which play and important role in travel and
tourism sector as it integrated with the property management system (Huybers and Crouch,
2015). With the help of it, updating the information automatically related to the vacant or
unavailable rooms. It help the organisation to maintain information about its business and
providing services and facilities which generate revenue of the firm and gain profit.
Activity 6
Explaining the importance of budget
Budget basically refers to a financial plan and a formal statement of estimated income
and expenses which are based on future plans and objectives (Richards, 2014). It is important for
each business because with of finance and budget no organisation can survive in the marketplace
till a long period of time. There are various types of budget which are as follows:
Operating budget- This budget consist of all revenue and expenses over a period of time
that a firm and government uses to plan its operations. These kind of budgets are developed to
have proper information about the expenses and gains which provide a clear image to the
management department of the company regarding sales, manufacturing, labour, production and
various others. This help in maintaining and managing policies and strategies according to
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survive an sustain at the market place till long time. This also help in generating revenue and
profit by providing services according the consumers needs and demands.
Master budget-This budget is the aggregation of all lower level budget that are produced
by the organisation's various functional areas which include budgeted financial statements,
financial plan and a cash forecast. In Carnival, budget refers to the combination sales, assets,
income activities which lead the company to design and set aims and monitor the performance of
the workers. These kind of budgets are specially used by large finance companies to maintain the
proper information about its financial activities and gain effective outcomes form its business
which help the company to gain revenue or generate profit.
Activity 7
Commenting on financial statements and reporting methods
Financial statement- It is a formal record of the financial activities and information or position
of a business, person or other entity. These statements include reports, assets, liabilities and the
equity from which the company can gain and gather financial information about its expenses and
gains (Spenceley, 2012). Financial statements provides an clear image of performance, cash
flows and financial position of any company which shows their stability at marketplace. There
are different types of financial statements which are following:
Income statement- it is a report which include the financial performance of a company
for the whole reporting period. This report starts with sales and subtracts out all expenses that
incurred during the period to arrive at a net profit or loss. Income statement consist, income,
expenses and depreciation that are related to the financial actives of the company.
Balance sheet- It is a report which shows the financial position of a business. The
information is aggregated in to the general sections of assets, liabilities and equity. The
classification of assets and liabilities are represents in their order of liquidity so that the most
liquid items are stated first (Urry, 2016). This is an important and key document which is use by
various organisation to manage the information about its assets and liabilities and it include in
most issuances of the financial statements.
Cash flow statement- This statement represents the movement in cash and bank balance
over a period of time. It include operating activities, investing activities and financing activities
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of the organisation. This document is critical to assemble and more commonly issued only to
outside parties.
Financial statement of Carnival Plc.
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Financial statement of Royal Caribbean
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