Hospitality Business Toolkit Introduction Report: Carnival Corporation

This report provides an introduction to a hospitality business toolkit, using Carnival Corporation as a case study. Task 1 examines financial performance, including principles, key performance indicators (KPIs), and double-entry bookkeeping with examples. Task 2 focuses on the HR lifecycle, emphasizing recruitment, education, motivation, evaluation, and celebration, with a performance management plan for Carnival. Task 3 addresses legal compliance, identifying relevant legislations and the impact of company, employment, and contract law. Task 4 explores interrelations within the hospitality sector and communication methods. The report integrates financial analysis, HR management, and legal considerations to provide a comprehensive overview of the hospitality business.

HOSPITALITY BUSINESS
TOOLKIT

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Principles of managing and monitoring financial performance............................................1
P2. Double entry bookkeeping system of debit and credit to record sale and purchase..............2
P3. Produce a trial balance applying the use of balance off rule to complete the ledger............4
TASK 2............................................................................................................................................5
P4. Different stages of HR life cycle of hospitality job role and their importance in retaining
and developing talent...................................................................................................................5
P5. Develop performance management plan for a Carnival Cooperation Plc.............................7
TASK 3............................................................................................................................................7
P6. Identify specific legislations that Carnival Cooperation Plc has to comply and adhere to...7
P7. Examples related with how company, employment and contract law has potential impact
on business...................................................................................................................................8
TASK 4............................................................................................................................................9
P8. Interrelation between different functions and roles within hospitality sector.......................9
P9. Different communication method, coordination and monitoring in the department...........12

CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality industry is a big part of service industry, it include many services like
transportation, hotel booking, cruise, travelling, food and drink services, lodging, event planning
and many more. This industry is very much dependent on the disposable income as well as the
leisure time of the people Carnival corporation & Plc is taken for understanding this concept
more clearly. It is an America based cruise operator which is working all over the world as a
largest leisure travel company. Carnival has more than hundred chips which is designed in the
form of hotels and serving all the required services. This will further help in covering some
topics in this report like financial performance of the company, life cycle of an HR and various
rule and laws made to per from the actives of the organisation.
.TASK 1
P1. Principles of managing and monitoring financial performance
Principles are the rules and regulations which s made by the company to run their
business activities. These financial principles are made to analysing the financial performance of
the company and it also provide support for improving or bringing changes in the performance.
Some of the principle which Carnival Plc follow for their good financial performance are-:
 Arranging finance- This is the very basic step which is mandatory for Carnival. This is
because it helps the organisation in running their business activities properly. Without
adequate financial resources operations cannot be carried out in a best possible way.
Carnival Plc have many options to raise the from banks and other financial institutions
(Tanford, 2016).
 Preparation of financial statement- This a again one the very important step for the
Carnival Plc in which they are require to make their financial statements. These
statements include profit and loss account, balance sheet, trial balance etc. it is important
for the company as it will help them to determine their financial position.
 Management of expenditure- It is important for the Carnival Plc to manage their day to
day expenses so that they can cut their additional cost. Company can do it by appointing
professionals for analysing and managing these costs.
 Risk- Carnival Plc has to manage their risk so that it can earn profit instead of losses. But
it is important for the company to take risk in their business because without risk there is
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no profit. Organisation can manage it by analysing their present and future situations; this
will help the company in minimising the risk as well as uncertainty. Raw material- Raw material in context of Carnival is food teams that are required for
serving the customers. it is important for the company to manage their expenses in these
food stuff so that financial resources can be utilised properly.
KEY PERFORMANCE INDICATORS
The following are 5 of the key KPIs for Carnival as these can directly improve the overall
performance level of the company as well as, it can enhance profitability and sales as well.
Through this, Carnival could easily grow in today's competitive business environment and these
are presented underneath:
Sales Per Labour Hour: This can be calculated through target SPLH, the sales (per
departments) are totalled and divided by the number of hours scheduled, where the formula is
Sales Per Labour Hour = Total Sales/Hours Worked. Through this, Carnival could effectively
enhance its profit margins.
Sales Per Head: This could easily be calculated with the help of a formula i.e. Sales Per
Head = Total sales/number of customers. With the help of this, Carnival could easily measure
its sales that has been given by an individual sales member.
Revenue Per Available Seat Hour: RevPash = Total revenue / Seat Hours is the formula
for calculating the Revenue Per Available Seat Hour. Here, both the time and capacity in
addition to average check to paint a bigger picture than just margins or average checks do on
their Carnival's own performance.
Seating Efficiency: This can be calculated with the help of a specified formula i.e.
Seating Efficiency = Number of seats filled / total number of seats available at a specific
time across all the locations that Carnival is having.
Table Turn Time: To manually calculate table turn time, identify a measurement
period, then count the number of parties served during that period and divide by the
number of tables that are being utilised. This is being considered as the process, which Carnival
can use to find out total number of table turned out time.
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P2. Double entry bookkeeping system of debit and credit to record sale and purchase.
Double entry bookkeeping system is a transaction entry system, companies uses this for
recording their every transaction in two sides of the accounts. In other words, any transaction of
Carnival Plc will get recorded in the debit as well as the credit side of the books.
Purchase A/C
Date Particular Amount Date Particular Amount
01st Feb To Kate's Kitchen 5001 28th Feb By balance c/d 34553
01st Feb To Harry 29552
Total 34553 Total 34553
Kate's Kitchen A/C
Date Particular Amount Date Particular Amount
6th Feb To Bank 5001 01st Feb By purchase 5001
Total 5001 Total 5001
Harry's A/C
Date Particular Amount Date Particular Amount
14th Feb To Meganne 2008 01st Feb By purchase 29552
17th Feb To Bank 29552 28th Feb By balance c/d 2008
Total 31560 Total 31560
Bank A/C
Date Particular Amount Date Particular Amount
6th Feb By Kate's Kitchen 5001
28th Feb To balance b/d 34553 17th Feb By Harry 29552
Total 34553 Total 34553
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Beverage A/C
Date Particular Amount Date Particular Amount
3rd Feb To sale 11203 28th Feb By balance c/d 42493
10th Feb To sale 8966
22nd Feb To sale 10614
17th Feb To sale 11710
Total 42493 Total 42493
Sales A/C
Date Particular Amount Date Particular Amount
3rd Feb By Beverage 11203
3rd Feb By Food 1824
10th Feb By Beverage 8996
10th Feb By Food 1687
17th Feb By Food 1611
17th Feb By Beverage 11710
28th Feb To balance b/d 49360 22nd Feb By Beverage 10614
22nd Feb By Food 1715
Total 49360 Total 49360
Food A/C
Date Particular Amount Date Particular Amount
3rd Feb To sale 1824
10th Feb To sale 1687 28th Feb By balance c/d 6837
22nd Feb To sale 1715
17th Feb To sale 1611
Total 6837 Total 6837
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Meganne A/C
Date Particular Amount Date Particular Amount
14th Feb By Bank 2008
28th Feb To balance b/d 2008
Total 2008 Total 2008
P3. Produce a trial balance applying the use of balance off rule to complete the ledger.
Trial balance is a part of book keeping in which balance of every ledger of the
organisation are listed down. Trial balance has two columns one is debit and other one is credit,
sum total of both the sides of trial balance has be equal. Some of the important points that has to
be remembered while constructing the trial balance are-:
 Three columns are made while constructing the trial balance and that are account
name, debit and credit.
 Total of both the columns has to be equal.
 Account name as to be filled according to the debit and credit balance.
Balance off rule- After financial year ends, some of the accounts get closed while some
are carried forward I the next year. Only obstructed accounts are carried forward in the next year
and they are known as balance off rule.
Trail balance
S. NO Particular Dr. Cr.
1 Purchase A/c 34553
2 Sales A/c 49360
3 Kate's Kitchen
4 Harry 2008
5 Beverage 42493
6 Food 6837
7 Bank 34553
8 Meganne 2008
9 Suspense A/C 30
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Total 85891 85921
TASK 2
P4. Different stages of HR life cycle of hospitality job role and their importance in retaining and
developing talent.
HR life cycle consist five stages which every person working in the organisation including
managers, leaders and employees has to go through it-:
 Recruitment- This is the first stage of HR life cycle in which HR professionals of
Carnival Plc has to hire a right candidate for the right job. For doing this, managers
of the company first analyse the requirement in jobs by making a job description.
This will help the HR professional to select a desired candidate for the company.
They can interview the person, as well as can take some test which help the
organisation in determining the person’s knowledge about the particular field.
 Education- This is the next step of HR life cycle n which they are required to
educate the hired person regarding their job roles and responsibilities. HR
professional of Carnival Plc give a good training to their new candidates so that
they perform well and help in achieving the goals of the company as soon as
possible. For example, if Company is hiring food & beverages manager they are
required to be educated about the foods, ingredients, methods and all the other
information regarding to this department.
 Motivation- It is very much needed in every person working in the organisation
because without it activities cannot be performed as per the requirements. HR
professionals can motivate F&B manager by appreciating them for their good
performance. It increases their morale and they give their best and perform even
better in the organisation which help the Carnival to achieve its goals and
objectives (Solnet, Kralj. and Baum, 2015).
 Evaluation- This is the stage in which performance of the employees are evaluated
to know if they are performing as per the requirement or not. It help the managers
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to find out the problem as well as the solution regarding the employees
performance. Company can provide training to the candidates if needed so that they
perform well next time and goals can be achieved. It also create a good relationship
between the manager and employees.
 Celebration- This is the last stage of the HR life cycle in which in which
employees are appreciated as well as rewarded for their excellent performance .
Carnival Plc take initiatives for boosting the morale of their F&B manager so that
next time again they perform in the same way to which in return helping achieving
the goals of the company.
Importance of HR life cycle for overcoming issues of staff retention-
HR life cycle plays an important role in retaining employees in the Carnival Plc as it
provide a good training to their employees so that they get motivated to perform their tasks.
Other than this, they also increase the morale of the people working by appreciating their
performance.
P5. Develop performance management plan for a Carnival Cooperation Plc
Performance management is a techniques used by Carnival Plc to measure, evaluate and
manage the performance of their employees. This help the organisation in improving their
performance as well as in achieving the goals of the company. Performance management
plan for carnival Plc are-:
 Plan- These are the collection of many policies, strategies and rule that are made to
perform the business activities (Chen and et. al., 2017) This is first step because it
provides a frame work to the organisation which help them to deliver the quality services
and products to their customers.
 Implement- this is the next step after the planning is completed. Implementation means
converting the plans into the action. This is the very complex and difficult stage and
managers need to be very attentive about their each and every step. This is done with the
support of above plans that are made, every activity assigned with some plan or strategy
to know the way of performing it.
 Evaluation- After implementation, this is the next step in which performance if the every
employee get evaluated or checked. Company’s manager does this to know if they are
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performing as per the desire of the Carnival or not. Evaluation stage also helps the
managers to determining the requirement of trainings.
 Feedback- This is the last stage of performance management, in which company take
feedbacks from their customers and clients to know about their views related to the
performance. It also help the Carnival to take corrective actions to improve their
performance (Mikhalkina and Cabantous, 2015).
On the other side, if it is talked about the negative behaviour of waiting staff, then it can
easily break a good reputation of a business organisation like Carnival Cooperation Plc. In order
to resolve the issues, It is essential to keep an eye on a range of factors and these are given
underneath:
Don't ignore the problem: Ignoring a specific problem could lead Carnival Cooperation
Plc to face number of issues. Therefore, it is pretty much required for managers of this company
to look into all the problems that staff is facing in order to improve motivation level.
Intervene as soon as possible: It is being found that, difficult employee has no idea that
his behaviour is a problem or that others react negatively to his actions. Therefore, Managers of
Carnival should keep an eye on how staff that how they are reacting with clients. Here, giving
them suggestions to how to resolve issues of staff members could easily lead them to resolve
issues.
Help the problematic employee to get back on track: Once the staff member of Carnival
begins to understand that these negative behaviours are real and experienced by others in the
organization, the manager or someone from human resources of a business organisation like
Carnival Corporation Plc to begin to coach the difficult employee in displaying more acceptable
and appropriate behaviours.
TASK 3
P6. Identify specific legislations that Carnival Cooperation Plc has to comply and adhere to
Legislations are the rules and policies made by the government which Carnival has to
follow for smooth running of their business activates. Legislation is an important part of the
organisation because it helps them to serve quality services and product as well as to gain
competitive advantages. There are some of the legislations which Carnival Plc is following are-:
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Food safety act, 1990- This act is made to ensure the safety of the food items that are
served to the company’s customers. Responsibility of food safety act is to ensure that quality
products are served by keeping the hygiene in the mind. This will help the Carnival Plc to
increase their productivity and profitability which in return enhances the customer base of the
company. Other than this, they are very ethically contributing in the society by fulfilling the
social factors. Organisation is following this act because it is helping them to satisfy the need to
clients as well as to accomplish their goals & targets (Köseoglu and et. al., 2016).
Employment act 2002- This act contains some rules and regulations related to the
working hour of employees as well as related to their pays. Carnival Plc follow this act and treat
their employees properly which reduces their turnovers and improve the overall performance of
the company. It also helps the organisation in reducing the conflicts and disputes among the
workers which in return provide them a guideline to motivate the employees of the company.
National minimum wages act, 1998- This act is created to pay the minimum wages to
the employees for their work on per hour basis. Carnival Plc provide their employees with the
good amount of remuneration which motivate the employees to perform better which help in
achieving the goals of the company. It improve the standard of living of employees and
encourage them to always work best.
Modern Slavery Act, 2015- Carnival Plc's code of business conduct along with the
ethics shows that all forms of child exploitation and forced labour and states that company
basically intent to comply with supporting all the rules along with the regulations that are related
to human trafficking and slavery as well.
Health and Safety at Work etc. Act 1974- This is being considered as another act,
which is required to be adhere by Carnival Plc in order to improve the overall performance level
of the employees and to provide them a health working environment.
P7. Examples related with how company, employment and contract law has potential impact on
business
Rules and regulations help the company to accomplish their goals and targets. Every law have
some advantages as well as disadvantages which affect the company and its working culture (Xu
and Gursoy, 2015). There are example of some companies which trapped in these problems
because of the breach of laws were-:
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 A very famous home décor company called Wilko had to pay file of £2.4 million because
of the company’s carelessness and improper working condition which harmed the health
of employee at the time of duty. That person got paralysed because of the tin full of paint
fall on that person while performing its activity.
 Volkswagen one of the largest car manufacturer in world, got into a scam in which they
penalised with very large amount because of their unethical behaviour. VW fitted some
software on their diesel engine cars to control the pollution at the time of emission check.
 KFC one of the very famous food restaurant company also penalised or fined for £1.5
million because of the burn injury that took place in one of their outlet. Two employees at
the time of work got burned which really damaged their hands and face. Warburtons is another company which was fined for £2m because they violated the
handling the machinery under the regulation act1998. Incident was an employee of the
company got hurt by the machine while working in it and employee’s hand was stuck
into it for around 25 minutes.
Impact of regulation, legislation and ethical principle Carnival Cooperation decision –
making-:
Every organisation including Carnival Plc uses these laws and regulation because these
impact the company’ performance. It provides an ethical framework to the organisation and
gives a direction. But sometime company also faces some negative impact of this when any
unpredictable thing happens. following these laws and regulations attract the customers toward
the company which increases their profitability (Oskam and Boswijk, 2016).
TASK 4
P8. Interrelation between different functions and roles within hospitality sector
Organisational Structure of Hotel
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Organisational Structure of Carnival Cooperation Plc.
Organisational Structure of Theme Park
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Organisational structure of hotel
Hospitality industry includes many services like hotel, transportation, tourist agencies etc. every
department have their own roles and responsibilities to perform and contribute in the hospitality
sector (Bowie and et. al., 2016).
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. From the above figures it can be seen that there is a relationship between different departments
of the Carnival Plc. Some of the interlinked departments’ are-:
 Sales and production- These two departments of the Carnival are interlinked with each
other because sales are not possible without the production. For example F&B manager
want to increase the quantity of the food products they have to take help of the production
department.
 Finance with production- finance department of Carnival and production department
are interrelated with each other because production needs a budget which is not possible
without the help of the finance department.
 Housekeeping and front office- These two departments are also interlinked with each
other. Housekeeping is related to the room cleaning and other areas of hotel. While, front
office people inform the housekeeping department to clean the rooms for the next guest.
P9. Different communication method, coordination and monitoring in the department.
 Email- this is one of the method to communicate in the organisation. Some important and
relevant information is spread through the mails on the personal email ids of every
employee.
 Text messages- This is another source of communication in the Carnival. High authority
uses this mode of communication sometimes for spreading the information.
 Conference- This is a face to face communication method in which a conference is held
by the top authorities and people are invited to attend the conference. These are also held
for sharing some important information to the members of the company.
 Seminar- Seminars are organised by the company to motivate their employees and to
boost their morale. They start working as per the desire of company and fulfil the needs
of the customers (Langvinienė and Daunoravičiūtė, 2015).
 Constructive feedback- Managers and leaders of Carnival needs to use this type of
communication method as well as, it basically focuses on behaviours of staff members
than and not making any sort of general statements and as well as they also should, keep
feedback impersonal and goal‐oriented.
 Active listening- Another crucial method, which is required as effective listening can be
considered as a part of language, as for the speaker so that, it could effectively aid in
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communication in regards to speaker's (managers and leaders) point of view as well in
regards to Carnival Corporation Plc.
.CONCLUSION
From the above report it has been concluded that hospitality industry is an important part
of the revenue generation in the economy. It has been noted that every company has some set of
rules and strategies that they apply while performing activities so that it can be done without any
problems. Companies are also taking in use these principles for making their p&l account,
ledgers and trial balance to know their financial position. Performance management is helping
the company to make effective strategies to solve the problems and to give the direction for the
business operations.
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