Lotus Group: Revenue Management, HR, and Financial Reporting Analysis

This report provides a comprehensive analysis of the Lotus Group, a British travel company, focusing on revenue management, human resource lifecycle, and financial aspects. The study delves into the principles of revenue management, including market segmentation and supply forecasting, and explores the applicability of tools like property management systems and booking engines. It examines the impact of pricing strategies, different types of financial statements (balance sheet, profit and loss account, cash flow statement), and the importance of budgeting for controlling business performance. The report further investigates the HR life cycle, including recruitment, career planning, and termination, while also offering recommendations for improving HR processes. Finally, the report touches on the impact of legislation on business decision-making and provides an overview of the company's financial performance and reporting mechanisms.

Unit 4

INTRODUCTION
Travel and tourism industry is providing leisure to people that have interest in travelling
from one place to another. At present it is the largest sector that is covering larger share in the
marketplace. It is mainly comprises of five parts such as lodging operations, transportation
services, providing food and beverage operations, retail stores etc.
Present study will be based upon on Lotus Group Company. It is the British travel
company that owes Dialal flight and lotus business travel (Xiang, Magnini, and Fesenmaier,
2015). It is also responsible for making travel arrangements that are related to flights, hotels, and
tours.
Report will include concept of revenue management and its rationality in travel and
tourism sector. Applicability of revenue management tools that will help in maximizing profit for
the future. It also includes pricing strategies on revenue management in a specific sector under
travel and tourism industry. Furthermore, it will include different types of financial statements
and reporting mechanism that will be used in an organization. Importance of budget that will
help in evaluating performance of the company. It also emphasize on HR life cycle that is
applied in travel and tourism sector. There are several legislations that will have an impact on
business decision making.
PART 1 SALES, BUDGET AND REVENUE MANAGEMENT
Concept and principles of revenue management
It refers to the process of selling product and services to right people, at the right time and
at right price that will help in evaluating the efficiency of cost in Lotus Group. It will help in
evaluating the performance of company by using data and information that will help in analyzing
demand and the behavior of consumer towards Lotus group.
Principles of revenue management
Market Segmentation:- This principle helps in determining customer needs and demands that
will help in satisfying its needs and wants (Sigala, 2017). Customers are divided into various
segments according to their demands that will also help them in fulfilling easily. It is important

for Lotus Group to segment consumer that will help in increasing sales as consumers are the king
of the market.
Supply Forecasting:- It is important to check out the availability of rooms for the traveler as
there may not be shortage of rooms so it is to be managed in advance for the future course of
action by the manager of Lotus Group.
Applicability of revenue management tool in Lotus Group Company
There are four important tools that will be used in the company are as follows:
Property management System:- This tool is used for determining success of company in the
future. This will help in making easy flow of work in company for the future. Nowadays
companies are adopting different technologies that will help in upgrading different systems that
will be applicable in Lotus Group. In selecting this tool company needs time for maintaining
flexibility in the premises.
Booking Engine: - This is also an important tool that will be used in detecting sale at a point of
time that will help in benefitting company in the future. This will help in attracting international
customers from other countries as well. It is important to use this tool in the business as it will
facilitate in increasing sales
Channel manager:- This will help in managing stock of Lotus Group manager effectively so
that it will facilitate various procedures for future.
Rate Shopper:- It is used in paying attention to competitors that are available in the market.
Through this company can evaluate its ranking for future in market.
Impact of pricing strategies on revenue management
It is having a greater impact on sales of the company. As consumers are the king of
market so company have to produce goods accordingly. It is important for Lotus Group to
satisfy needs and demands of traveler who are travelling from one place to another (Mahrous
and Hassan, 2017). There are different pricing strategies in market such as penetration, price
skimming etc. that will facilitating various aspects in the market. Consumers buy product after
seeing price that will have greater impact on business operation of Lotus group. As price is the

main factor that will affect sales of the company. If prices of Lotus Group will be high then
consumer will shift to its competitors that will have greater market share in the company. As
price is important component for consumers that will help in providing various aspects that will
provide various segments that will impact on the company’s operation.
Applicability of principles of revenue management in Lotus Group Company
As market segmentation is one of the principles that will help in managing revenue in the
company. There are various aspects that will be bringing more consistency in the operations that
will help in managing different factors that will affect operations and managing production and
helps in improving productivity in Lotus Group Company. Forecasting demand in the future will
help in bringing new things and innovative ideas for the future. If performance of company is
good then it is very important in managing various aspects that will help in providing various
aspects in the future (McGregor and Robinson, 2019). Quality of product is being provided to
customers for the future course as it will help in making different aspects for the company. There
are various ways that will be creating different strategies for making various segments that will
help in increasing profit for future.
Different types of financial statement and reporting system in the company
The types of financial statement and reporting system in lotus group are balance sheet ,
profit and loss account and cash flow statement. In balance sheet all the asset and liability if
company comes. In profit and loss account we write all the indirect expenses incurred in a
accounting year. Cash flow statement shows the inflow and outflow of cash i.e. whether cash
came in business or cash gone out of the business (Battour and Ismail, 2016). These financial
statement helps in planning , analyzing, benchmarking and decision making to management.
Makes investor , promoters , debt provider and creditor think before investing , credit ,
borrowing ,etc . It provide statutory changes. It helps in collecting capital for company. It helps
all the outsider users to take important decision. If there is proper maintenance of financial
statement then this provides good competition in market and inflow of cash.
Importance and Value of budget for controlling business performance and variances

Budget plays an important role in evaluating performance of the company. Success of
Lotus Group will also depend on budget as without preparing a proper budget a company cannot
survive in the market. Successful businessman always make a proper budget for its company and
plans for the future curse of action that will be performed by analyzing different functions of the
company. It helps in gaining knowledge regarding expenses and revenues of the company and
then the businessman can take proper decision to use available resources so that there will be
growth and development in company. It also helps in reducing cost of production ad increasing
profit margin by providing return on investment of Lotus Group. As it is providing control and
planning of financial department of growing business (Glover sand et. al., 2016). There are
various perspective that will help in measuring performance and variances that are available in
the company. Therefore, budget helps in saving money for future projects in the company.
Interpretation of financial statement and reports in an organization
As in growing era there are various aspects that will be help in gaining more knowledge
regarding financial aspects of the company. Annual turnover of Lotus group is £ 315 million as
most successful private company in UK. It comes in 1000 companies that will have greater
impact on the market in United Kingdom. It is also listed under London stock exchange that will
be providing different aspects that will be creating many forms for the companies that are
essential in the future course of action. As there are various statistical approach that will have a
greater impact on various sources that will be helpful for the future course of action (Giap,
Gopalan and Ye 2016). There are different segments that will be decided for the company in the
near future. There are different segments that will be providing in the company to survive in the
company for future.
Business performance based on financial statement reports of travel and tourism industry
As Lotus group is performing well in the United Kingdom and other parts of country that
will help in gaining different aspects for the future course of action. It is having different
stakeholders that will help in gaining various perspectives for the future course of action. Profit
and loss account of Lotus group is showing net profit that is available in the account of the
company. Customers are also coming from different areas that will be useful for the future
course of action. There are various segments that will be gaining more profit in the future for

proper utilization of resources in the company (Mason, 2015). Various aspects that will be
creating different segments as there are various financial statement for the company as it will be
having different perspective as gaining more profit in the future. Various stakeholder that will be
having different perspective for the future gaining knowledge as it is also essential.
PART 2 HR LIFE CYCLE AND HUMAN RESOURCE STRATEGY
Human resource life cycle and its different stages
It refers to changing scenario that will be providing different stages that is helpful for the
future course of action. There are various stages that will help in bringing more efficient way that
will be providing different aspects for the future. As there are different segment that will using
various information for the future. There are different roles that will be played in the company
will help facilitating more in the company. Different stages that will be used during human
resource life cycle.
Recruitment and on boarding:- This is the first stage that involves introduction of new
employee into the company premises.
Orientation and career planning:- In this proper planning of career is being done that will help
in facilitating different aspects for the future in company.
Career development:- It is essential for the company to provide career development to its
employee that will be creating different aspects for future course of action as it is important that
will help in gaining more knowledge and improvement of skills in the company (De Grosbois,
2016).
Termination:- This is the last stage of HR life cycle in that employee will be terminated from
the company that will create loss for it. As there are different segments that will be gaining more
knowledge and different perspective of the company in the future.
Importance of HR life cycle and overcoming issues of staff retention
It is very important that will help in gaining more knowledge regarding various aspects
for the future course of action. It is important in gaining different perspective that will be
beneficial for the future course of action. This cycle plays n important role in the company that

will be providing different aspects for the future in Lotus Group. It important that every company
is following a proper life cycle that will be gaining different perspective for future in the
company. There are various segments that will be gaining different sources that will bring more
efficiency in the future (Zaitseva, Goncharova and Androsenko, 2016). From overcoming issues
of retention company have to be very particular regarding different segments that will running in
various perspective for the future growth and will be helpful in attracting more employees. It is
important in bringing new talent into company that will create goodwill of company in the
market.
Recommendation on improvement of HR processes
HR processes can be improved by adopting different software’s that will be gaining
different ideas and innovation that will be facilitating in the company. There are various factors
that will help in improving HR processes in the future course of action. Using Human Resource
Information System will be help in gaining different perspective that will bring efficiency in
work and getting more involved in the business process for the future course of action. Various
aspects that will be gaining more knowledge and enhancement in the business process.
PART 3 LEGISLATION AND ETHICS IN TRAVEL AND TOURISM
Impact of legal issues on travel and tourism industry and legislations that will be applicable in
this sector
Legislation is having a greater impact on business operations that will be creating
different aspect in the future. As there are so many factors that will have greater impact on
business as setting up business in other country will disturb economy that will be creating a
brand image in the company (Nezakat and et. al., 2015). There are different issues that will be
related to health and safety of employees in Lotus Group. As there are different segments that
will be facilitating in providing different sections that will be applicable in business for the
future. There are different legislation as they will have more restriction in achieving different
concept that will be creating different legislation for the future. As travel and tourism industry is
the fastest growing industry that will greater impact from its competitor that are working in the
future course of action.

Impact of employment and contract law on business decision making
These laws will affect functioning of company as it is important for the future course of
action. As these will have greater impact on functioning as well as different approaches that will
be creating different perspective for the future. There are various aspects that will have a greater
impact that will be more beneficial for the future course of action. These laws will have greater
impact on company’s performance as well as on decision making of the company. Employment
will an impact on health and safety of employees of Lotus Group as well there different ways
that will have a greater perspective for the future course of action. If employees are not
employed then they will not be able to take decision for the company and this impact its working
operation (Schuckert, Liu and Law, 2015). There are different norms and principle that will have
greater impact on business working as there are so many laws that are applicable while doing
business in other country.
Potential implications of regulations, legislations and standards on decision making
Regulations of the specific country will have a greater impact on decision making as
there are several ways that will have a potential impact on business operations of the company.
Different countries is having different regulations that will have impact on business operations as
there are different strategies that will be followed in the company for future course of action.
These legislations and standards plays an important role for the company. As it is important for
the company to follow proper rules and standards that will be running in a particular country for
the future. It is important for the company to follow these norms as there are some regulations
that will have an impact on business operations (Camilleri, 2018). As Lotus Group is providing
services related to travel and tourism industry so it has its operation in different countries and
they have their own rules and regulations that will be followed by company and sometimes it
will have greater impact on decision making process in premises.
Critical reflection on potential implication
According to the Dubey, 2016 Rules and regulation is having a greater impact on
business operations as well as decision making in Lotus Group. There are several aspects that
will be having impact on business operations. There are several ways that will affect operations
as well as legislations that will create a greater impact on decision making of the company. There

are different rules and regulations that will be followed as they are norms for the future running
of business. There are several ways that will have greater impact on company’s operation.
As per the view Baum ed., 2016 Different countries are having different operations that
will be governed in different companies. It will be depended on its nature and different ways that
will have greater impact for future course of action. As there are different sources that will
impact operations as well as factors for different company’s operation for the future. These will
affect potentially on company’s operations as this will have a greater impact on business as there
are different rules and regulations for impact on different departments in Lotus Group. As there
may be various techniques that will be created in the future and will have an impact for the
future.
CONCLUSION
From the above study it will be concluded that revenue management plays an important
role in running company’s operation as it will be providing right product to right people at right
price that will help in increasing efficiency of cost in business. In travel and tourism sector
revenue manager will help in efficient use of cost in the company that will bring various
perspective for the future. As there are different tools that will have a greater impact on
company’s operation as its revenue will be checked by several different perspective. As it is
important for the company to reduce operational cost for the future. There are several pricing
strategies that will create difference in selling a product in the market. Principles that will lead to
create difference in several major decision making that will create a difference at some point of
sale in company. Financial statement will help in gaining knowledge regarding performance and
productivity that will an impact on future operations of the company.HR life cycle that is to be
followed in the company will bring efficiency for the future as it will in increasing profit and
productivity in the company. Budget is another source that will help in gaining knowledge
regarding different perspective for the future. There are several legal issues that will impact
decision making in company.
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