Travel and Tourism Business Toolkit: Revenue Management Report

This report provides a comprehensive analysis of the travel and tourism industry, focusing on revenue management, HR lifecycle, performance management, financial statements, and relevant legislation. The report uses Carnival Corporation as a case study, examining the application of revenue management tools within the food and beverage sector and exploring the different stages of the HR lifecycle, including recruitment, education, motivation, evaluation, and celebration. Furthermore, it develops a performance management plan to address employee retention challenges and discusses the impact of company, employment, and contract law on decision-making. Finally, it outlines the types of financial statements and the importance of budgeting for controlling business performance within the context of the travel and tourism industry.

TRAVEL AND
TOURISM BUSINESS
TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ..........................................................................................................................................1
P1 The rationale and principles of revenue management for the travel and tourism industry....1
P2 Investigate how a specific sector of travel and tourism industry applies revenue
management tool.........................................................................................................................2
TASK 2............................................................................................................................................3
P3 The different stages of HR life cycle applied to specific travel and tourism.........................3
P4 Develop performance management plan for travel and tourism job role..............................3
TASK3 ............................................................................................................................................4
P5 Specific legislation in the travel and tourism industry...........................................................4
P6 Illustrate how company, employment and contract law has a potential impact on decision-
making.........................................................................................................................................5
TASK 4 ...........................................................................................................................................5
P7 The different types of financial statements and reporting mechanism for organisation........5
P8 The importance and value of budget for controlling business performance. ........................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
.........................................................................................................................................................7

INTRODUCTION
Travel and tourism industry is related with various combination of activities, as in this a
individuals travels to various places. This type of industry is one of the fastest growing industry
because needs and preferences of the customer's are rapidly changing. Many organisations in this
industry are making continuous plans and strategies to attract more and more customer's, so that
their profitability is increased. This report has been based in Carnival Corporation which is one
of the top British cruise operator. The organisation focuses on providing various services to its
potential customer's(Bharwani and Butt, 2012). These services includes- food, bars, events,
entertainment, etc. this report will deal in various principles of revenue management, different
stages of HR life cycle and a proper management plan for solving the problem of employee
retention in the organisation.
TASK 1
P1 The rationale and principles of revenue management for the travel and tourism industry.
Revenue management is generally concerned with managing overall cost of the industry
in various parts of the world. In relation to, Carnival Corporation it is concerned with managing
the cost and expenses in the best possible manner. For managing the revenue of the organisation
finance manager of needs to make better plans and strategies to achieve the target in the best
possible manner. The plans and strategies can be related to various services and accommodation
provided by the organisation and knowing the preferences of customer's, so that revenue can be
increased.
Rationale of revenue management
 Revenue management helps in making plans for introducing new range of services for the
potential customer's. This is done by providing services at the minimum cost , so that
business activities can be conducted in the effective manner.
 The cost of the organisation is decreased because in revenue management traditional
pricing methods are used(Bierman and Smidt, 2012).
Principles of revenue management
Market segmentation- According to this principle customer's of the organisation are
divided into various segments such as qualifiers and non-qualifiers. This segmentation is done

according to their attributes. The major reason behind choosing this principle is Carnival
Corporation will be able to increase its profitability and sale.
Historical demand and booking patterns- In this principle past data is analysed and
evaluated for making better plans and strategies for the future. This Principle is used in Carnival
Corporation for analysing the current need and preferences of the potential customer's, as this
directly increases revenue of the organisation.
Revenue management tools
Discount Allocation- This tool is generally used to provide various offers and discounts
to the potential customer's. These discounts offers are generally provided by Carnival
Corporation to increase the sale and the effective manner. Such offers are limited for a particular
time period, like seasonal discounts are given to attract customer's from various new locations.
Capacity Utilization- In this the focus is emphasised on using the capacity of the
organisation in the best possible manner. Major focus of this is to increase the profit and revenue
in the best possible manner(Dasgupta, 2011). This means organisation is having capacity of 150
passengers than focus must be emphasised on utilizing such capacity in the proper manner.
P2 Investigate how a specific sector of travel and tourism industry applies revenue management
tool.
The travel and tourism industry mainly consist of various other sectors such as
accommodation, food and beverage, events, etc. Operating in all these sectors will help the
organisation in increasing its profitability in the systematic manner. If the manager of Carnival
Corporation is successful in managing various sectors in the best possible manner than
sustainability in the market can be attained for the longer period of time. The revenue
management tool is applied in F&B sector of Carnival Corporation. This sector is briefly
discussed below-
Food and beverage industry of Carnival Corporation-
Food and beverage industry is rapidly growing industry. As the major focus of this
industry is on satisfying the needs of its potential customer's. Various plans and strategies are
made to attract more and more customer's , so that economic development can be achieved. It is
very much necessary for Carnival Corporation to manage the revenue of food and beverage
sector, so that overall productivity can be increased(Gervais, Heaton and Odean, 2011). This is
done by making use of Review score Tracking tool. As per this tool best plans are made to

satisfy the unlimited and uncertain needs and preferences of the customer's. By doing this
Carnival Corporation is successful in reducing the competition level in the market. Management
of the organisation focuses on providing better services to customer's and guest, so that their
brand image and sale can be increased in the market.
TASK 2
P3 The different stages of HR life cycle applied to specific travel and tourism.
The various stages of HR life cycle is used to manage the task and employee's of the
organisation in the coordinated manner. Points for HR life cycle in Carnival Corporation is
discussed below-
Recruitment- It is the continuous process where right candidate is hired for the right job.
This is done by analysing the skills and capabilities of the individuals,so that goals of Carnival
Corporation is attained. It is quite essential for Carnival Corporation to make hire skilled
candidates for management of work on their cruise ship. Currently organisation is in the need for
F&B manager who must be fluent in English and must be able to handle the work on Cruise ship.
Education- Under this process necessary information and eduction is provided to the
employee's for a specific new job. Carnival Corporation has made various new plans and
strategies for providing appropriate knowledge and skills to the employee's of F&B department
of the organisation. The knowledge is provided regarding the culture and values, so that
customer's satisfaction is increased(Hjalager, 2010).
Motivation- Various motivational tools and techniques are used by the manager of
Carnival Corporation, so that employee's are able to increase their performance. Focus is
emphasised on providing incentives and other compensatory benefits for the betterment of
organisation.
Evaluation- The evaluation of the performance of F&B manager is done to take
necessary actions for the improvement. After the evaluation various methods are drawn out, so
that work and task can be completed in the best possible manner.
Celebration- Under this stage employee's are praised for the work done in the
organisation. New strategies and plans are implemented to increase the morale of Food and
beverage manager. As by doing this manager will be able to take better responsibilities.

P4 Develop performance management plan for travel and tourism job role.
Performance management plan is used to analyse the performance of employee's in the
organisation. This plan is generally made to overcome the challenges and risk which can arise in
the future. Travel and tourism industry consist of various risk and uncertainties , so it is
necessary for Carnival Corporation to make proper performance management plan. The working
structure of the organisation can also be maintained by using this plan. Performance
management plan for Carnival Corporation is discussed below-
Assess current performance management process- Under this current strength of the
organisation is identified. This includes- man, material, etc. the major focus of this is to deeply
analyse the management process, so that mission of Carnival Corporation is achieved.
Set objectives and goals- The next step is to determine and set the framework for goals
and objectives. This step is done by knowing the potential of the employee's and managers of
the organisation(Lal, 2015). Objectives are set on the basis of needs and wants of the
organisation.
Create and action plan- After setting various objectives next step is to make proper
action plan for increasing the performance. In this plan responsibilities of each and every
employee is allotted as per their capabilities and skills.
Keep track of progress- In this step the effectiveness of plan and organisation is
analysed. This is done by monitoring and reviewing the performance of employee's. After the
monitoring gap in the performance is analysed and plans are made to complete the task in proper
manner.
All the steps of performance management plan will be help Carnival Corporation in reducing the
chances of employee retention and turnover. The skills and knowledge of F&B manager can also
be increased if this plan is implemented in the effective and efficient manner.
TASK3
P5 Specific legislation in the travel and tourism industry.
Every organisation requires different set of rules and regulations for managing its day to
day operations and task(Leung and et. al., 2013). Some of the major laws and regulations
required in Travel and Tourism are discussed below-

Tourism Act,2011- This act was implemented for managing and regulating the activities
and services of tourism industry. It is important for Carnival Corporation to follow this law, as
with the help of this organisation will be able to perform its operations in the legal manner.
Food and safety Act, 1990- According to this law it is necessary to manage and
maintain the quality of food which is being served to the potential customer's. Carnival and
Corporation offers wide range of food services on the cruise, so with the help of this law
manager will be able to know the right strategies for satisfying the customers and achieving
desirable goals in the effective manner.
P6 Illustrate how company, employment and contract law has a potential impact on decision-
making.
The employment and contract law largely affect decision-making process of Carnival
Corporation because it these laws and regulations are properly used than satisfaction level of the
employee's and customer's will be increased. With the help of these laws and regulations
manager of the organisation will be able to decide the future course of action in the proper
manner. Employment law will help in safeguarding the rights of individuals working in the
organisation whereas it will also help in decreasing the chances of employee turnover. Manager
of Food and Beverage will know what plans and strategies can be implemented for achieving the
targeted goals and objectives in the best possible manner(Osadchy and Akhmetshin, 2015S).
TASK 4
P7 The different types of financial statements and reporting mechanism for organisation.
The are various types of financial statements which helped in analysing performance of
Carnival Corporation are discussed below-
Income statements- This is made for knowing the financial condition and performance
of the organisation. Income statements are generally prepared by public company for knowing
its overall performance.
Balance sheet- This method is used to know the inflow and outflow of cash in Carnival
Corporation. It is mainly divided into three broad categories such as investing, operating and
financial(warbrooke and Horner, 2012).

Statement of changes in equity- In this various changes in the equity such as profit and
loss are recorded for a particular period of time. This method helps in making plans for day to
day transactions of Carnival and Corporation(Tsiotsou and Ratten, 2010).
P8 The importance and value of budget for controlling business performance.
Effective plans for budget plans helps in increasing the quality of service in Carnival
Corporation. With the help of proper budget planning future problems and issues can be solved
in the proper manner. The importance and value of budget are discussed below-
 Budgets will be helpful in making better plans and strategies for the future course of
action. As with the help of these management of Carnival Corporation can know what is
to be done.
 Budgets will help in monitoring the work of each and every department in the systematic
and coordinated manner(Williams and et. al., 2010).
CONCLUSION
From the above given report it has been concluded that formation of better plans can lead
to achievement of goals and objectives of Travel and Tourism industry. This type of industry
majorly works with the motive of increasing the satisfaction level of customer's. For this it is
necessary for organisations to make chances in its working structure. HR Cycle can be used to
hire and recruit best candidates for the organisation. With the help of this organisation will be
able to manage the needs and demands of the customer's and employee's. Competition level can
be decreased if proper budget plans are made. As with the help of this long and short term goals
will be easily achievable.

REFERENCES
Books and Journals
Bharwani, S. and Butt, N., 2012. Challenges for the global hospitality industry: an HR
perspective. Worldwide Hospitality and Tourism Themes. 4(2). pp.150-162.
Bierman Jr, H. and Smidt, S., 2012. The capital budgeting decision: economic analysis of
investment projects. Routledge.
Dasgupta, D., 2011. Tourism marketing. Pearson.
Gervais, S., Heaton, J.B. and Odean, T., 2011. Overconfidence, compensation contracts, and
capital budgeting. The Journal of Finance. 66(5). pp.1735-1777.
Hjalager, A.M., 2010. A review of innovation research in tourism. Tourism management. 31(1).
pp.1-12.
Lal, P., 2015. Transforming HR in the digital era: Workforce analytics can move people
specialists to the center of decision-making. Human Resource Management
International Digest. 23(3). pp.1-4.
Leung, D., and et. al., 2013. Social media in tourism and hospitality: A literature review. Journal
of travel & tourism marketing. 30(1-2). pp.3-22.
Osadchy, E.A. and Akhmetshin, E.M., 2015. Development of the financial control system in the
company in crisis. Mediterranean Journal of Social Sciences. 6(5). p.390.
Swarbrooke, J. and Horner, S., 2012. Business travel and tourism. Routledge.
Tsiotsou, R. and Ratten, V., 2010. Future research directions in tourism marketing. Marketing
intelligence & planning. 28(4). pp.533-544.
Williams, N.M., and et. al., 2010. Ecological and life-history traits predict bee species responses
to environmental disturbances. Biological Conservation. 143(10). pp.2280-2291.