Carnival Corporation Report - Unit 4: International Travel & Tourism

This report provides a comprehensive analysis of Carnival Corporation, a major player in the travel and tourism industry. It begins with an introduction to the sector and the company's operations, including its diverse service offerings like accommodation, food, entertainment and shore excursions. The report delves into revenue management principles, including market segmentation, booking patterns, and the use of overbooking strategies. It examines revenue management tools such as discount allocation and capacity utilization within the context of the food and beverage sector. Furthermore, the report explores the HR life cycle, covering recruitment, education, motivation, evaluation, and celebration stages. It also outlines a performance management plan to address issues related to employee cooperation. The report analyzes legislation relevant to the travel and tourism industry and explores different forms of financial statements and the importance of budgeting. Finally, the report discusses the interpretation of financial statements and concludes with a summary of key findings.

Carnival Corporation

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Revenue management ......................................................................................................1
P2 Revenue management tool ...............................................................................................3
M1 Impact of pricing strategies impact on revenue management..........................................4
P3 HR life cycle .....................................................................................................................4
P4 Performance management plan.........................................................................................5
P5 Legislation applied to travel and tourism industry ...........................................................6
P6 Employment and Contract law ........................................................................................7
P7 Different forms of financial statements............................................................................7
M2 HR life cycle importance.................................................................................................8
P8 Budget Importance ...........................................................................................................8
M4 Interpretation of financial statements.............................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Travel and tourism sector is a leading an fastest growing industrial sector in today's
economy. This sector generate large amount of revenue by offering different types of facilities to
customers all around the world (Bayliss and et. al., 2014). This is one of the most diversified
industry as this industry receive customers from all around the world. In order to increase
contribution of this industry in economy government offer lot of benefit and aid to this industry.
Present report has been made on, Carnival Corporation & PLC and British-American cruise
operator. Both of these entities offer wide range of services to customers such as shore
excursions, food, bars, travel and tourism services, accommodation, events, accommodation etc.
Carnival Corporation attract attention of customers near about 11.5 million on yearly basis. In
this report formative discussions has been conducted on, principles and rational of revenue
management. In addition to this HR life cycle is also been covered in this report. Further this
project covers the aspects of performance management plan as well as legislation in context with
travel industry. Lastly, in this report financial statements as well as essentialness of budget is
being discussed in this report.
P1 Revenue management
Travel and tourism industry is a wide industrial sector in which there are different types
of departments involved in order to offer satisfaction to individuals with an aim to earn large
base of profitability. In relation to, it has been evaluated that Carnival Corporation & PLC
department of revenue management mainly generate their revenue with the activities like
overbooking. Further this has been evaluated that revenue management involve proper analysis
of ADR, standard rate and availability of services. In relation to, Carnival Corporation & PLC
entity finance manager is required to make sure that operations within entertainment, cruise
services, food and accommodation are properly managed as to ensure more profitability. In
addition to this, with the effective anticipation of behaviour of customers an evaluating
accessibility of services as well as products Carnival Corporation & PLC can maximise overall
revenue rate.
Revenue Management Principle and Rationale
With the assistance of revenue management principle an entity can make significant reduction in
their cost which is mainly linked with long-standing rating tactics.
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With the help of revenue management plan company can develop new products and services.
Along with this entity can also set new price range that allow them to operate their business
operations in best effective manner.
With the assistance of effective principles in travel and tourism industry engaged
organisations can effectively able to manage revenue:
Market Segmentation:
In this entity is required to segment their customers into non-qualifies and suffice which
is mainly done by concerning different factors as well as elements. This will aid Carnival
Corporation & PLC to significantly increase their net income and annual turnover.
Booking Patterns and Historical Demand:
In accordance with booking patters as well as historical demand Carnival Corporation &
PLC, this has been evaluated that with the help of examining historical data entity can develop
programme as to undertake booking plan in best effective manner through which organisation
can identify customers needs and demand of customers and can consider actual demand.
Overbooking:
This factor is related to providing more reservations to customers beyond entire capacity.
Overbooking can be applied when cancellations are done by customers. Main aim of this is to
significantly increase overbooking level as to make increase in overall revenue while reducing
risk.
Revenue Management Tools
Discount Allocation:
This tool aid Carnival Corporation & PLC to offer certain attractive benefits and schemes
to customers such as coupons, discounts and other benefits in order to further lure new guest. In
addition to this, entity can also provide advance booking facilitates to customers as to make
significant increase overall sales margin of entity. Along with this organisation can also benefit
their customers with discount schemes in a seasonal manner in order to attract attention of large
base of consumers from various geographical locations.
Capacity Utilization:
This has been analysed that there are some specified fixed capacity available in cruise.
Thus, it is essential for Carnival Corporation & PLC to effectively utilize their available space
as to increase their overall revenue. In this organisation general manager to effectively analyse
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reservation capacity in cruise as to provide best effective services to consumers. For instance, if
Carnival Corporation & PLC have overall capacity of 150 passengers in their ship then it
becomes important for entity to effectively use all their 150 passengers capacity.
P2 Revenue management tool
Travel and tourism industry involve different form of sector in it namely accommodation,
tourism, food and beverage, services, conferences and events and more. Thus, it becomes
important for Carnival Corporation & PLC to manage operations within their sector as to ensure
more competitive advancements. Mentioned below, revenue management tool is being applied in
Carnival Corporation & PLC food and beverage sector with an aim to ensure high profitability.
Food and Beverage industry of Carnival Corporation & PLC:
Within travel and tourism industry there are wide range of sector included in travel and
tourism industry that include fine dining, bars, lounges, fast food, pubs and clubs. This has been
evaluated that food and beverage is a leading sector in travel and tourism. This segment not only
satisfy need of customers but also provide significant employment opportunity within a country.
In order to effectively manage operations in food and beverage sector revenue manager have
responsibility as to increase organisational growth (DeLacy and et. al., 2014). In this manager by
taking advantage of revenue management tool such as Review Score Tracking can rise overall
profitability of entity in a well defined manner.
In respective organisation, food and beverage sector provide different types of pleasant-
tasting food offerings to consumers in order to offer them effective satisfaction. In order to
ensure competitive positioning in marketplace it is essential for Carnival Corporation & PLC
revenue manager to take advantage of different types of review rating tracking. With the help of
this company can provide their customers with the facility of scoring. In this guest can score
product, experience and services of entity. In this as to ensure high revenue company is taking
advantage of effective measures such as Wifi landing page, effective interaction etc. this will
effectively allow them increase their overall profitability level by ensuring long term
sustainability in marketplace.
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M1 Picing strategies impact on revenue management
Differentiated pricing strategies are different types of pricing strategies that are determined by
analysing different types of factors such as external environment, geographical area and more.
As per in accordance with the view point of Hunt (2015), organisation is required to forecast
principle of revenue management in order to ensure effective success. This can be effectively
done by monitoring. While with the assistance of controlling Carnival Corporation & PLC can
effectively able to manage their activities in best effective manner.
The specific application of revenue management are:
Market segmentation:
As per according to airline, customers are mainly segregated into two segment that are
qualified and non-qualified as to increase revenues.
Supply and Demand forecasting:
With the help of effective supply and demand forecasting Carnival Corporation & PLC
can effectively able to forecast demand and supply in travel and tourism industry.
P3 HR life cycle
Human resource include wide range of unique life cycle in which there are different types
of stages are involved. In this every stage have its own opportunities, challenges and benefits.
Carnival Corporation & PLC HR life cycle breakdown structure is being defined below:
Recruitment:
It is a first stage in which HR manager recruit potential candidates in order to place them
in right position in company. This is one of the most important role through which HR equipped
all departments within entity with skilled and potential employees. In relation with Carnival
Corporation & PLC, Food & Beverage Manager on their Cruise Ship undertake effective
strategies as to recruit highly skilled and efficient candidates who have excellent command in
English as organisation provide their services all around the world.
Education:
In this process HR manager of company offer effective eduction to candidates after their
joining in organisation new position. In relation with Carnival Corporation & PLC, HR manager
undertake advantage of different types of strategies as to provide knowledge to their employees
related to job responsibilities, role and expectations. In addition to this, Food & Beverage
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Manager also provide knowledge to their employees related to cruise culture as well as values in
order to make significant increase in their future efficiencies.
Motivation:
In order to operate functions in best effective manner it is essential for an organisation to
undertake use of motivational tools as well as techniques as to effectively direct employees
towards organisational goals and well as objectives. In relation with present organisation, this
has been evaluated that manager of Food & Beverage engage in the process of conducting
regular meetings in order to offer attractive compensations to employees as to provide them
effective motivation.
Evaluation:
In this Food & Beverage Manager of Carnival Corporation & PLC engage in the process of
effectively evaluating performance of employees. This benefit them to provide them with
effective training and development courses as to increase required skills and knowledge to
employees in order to increase their performance level.
Celebration:
It is the fifth stage of HR life cycle in which it is essential for an organisation to praise
their employees for their hard work (Höpken and et. al., 2015). In relation with Carnival
Corporation & PLC, HR manager of entity undertake strategies as to provide employees with
attractive benefits as to empower them in best effective manner.
P4 Performance management plan
As to accomplish organisational goals and objectives in best effective manner organisation is
required to develop best performance management plan with the help of different tools as well s
strategies. This has been evaluated that, Carnival Corporation & PLC waiters and waitresses on
cruise line are facing issues related to working conditions and are refusing to cooperate with
other team leaders. In order to overcome this challenge management professionals of Carnival
Corporation & PLC is undertaking advantage of performance management plan which is further
being defined below:
Assess current performance management process:
At this factor, Carnival Corporation & PLC manager engage in the process of
determining actual strength of workforce, resources and material in order to make significant
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increase in their performance. This will significantly aid them to effectively accomplish
organisational goals and objectives in best effective manner.
Set objectives and Goals:
After the evaluation of mission Carnival Corporation & PLC is required to formulate
goals and well as objectives as to effectively evaluate employees potential. In this entity is
required to increase collaboration and communication among employees as to fulfil
organisational goals in best effective manner.
Create an action plan:
Organisation after framing objectives is required to create an action plan in which they
are required to assign roles and responsibilities to each and every individual as per according to
their skills and potential. By breaking down responsibilities to employees of cruise Carnival
Corporation & PLC can effectively able to accomplish organisational objectives in a well
defined manner.
Keep track of progress:
It is an important for an organisation to keep regular track on their performance and
evaluate the activities of plan are undertaking in a well defined manner. In context with present
scenario entity is requirement of engage in the process of managing employees performance.
This will allow organisation management to resolve any issue related to employees performance
in proper time. With the help of this entity can fulfil goals in a well defined manner.
P5 Legislation applied to travel and tourism industry
Companies performs on the basis of proper compliance set of framework. In this it is
essential for Carnival Corporation & PLC manager to evaluate necessary laws that are applied
on organisational workplace structure. With the help of this management can effectively able to
overcome any issue in respective time manner that further benefit in fulfilling organisation
objectives in best effective manner.
The Tourism Act 2011: This act is mainly constituted with the aim to manage, modify
the market and pursue the activities with tourism related services. This law is significance to
adhered by present entity in which it regulates the cruise operation s in all over the world in best
compliance oriented way.
Food Safety Act 1990: Law is basically consists a structure in which it provides food
legislation. In this elements is related to quality, labelling and security of food and beverages
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should covered in a proper way. Thus, it becomes essential for present organisation implement
every related laws and legislations on organisational workplace structure as to increase entity
efficiency.
P6 Employment and Contract law
It has been identified that, employment as well as contract law significantly impact upon
decision making of company in number of ways. As present entity Carnival Corporation & PLC
perform their operations in travel and tourism organisational sector. Thus, it becomes essential
for entity of effectively undertake advantage of necessary and relevant laws as this have
significant impact upon organisation decision making process.
Laws, regulations ad legislations acts as most important aspect in travel and tourism
industrial sector. As this industry is most diversified industry thus, it is essential for entities
involved to implement significant legislations in their workplace structure as to effectively
develop decisions.
 Trade description act, 1968: Organisation provides the full fledged information as per
the customer requirement. They do not give any usefulness information which customer
have to suffer or mislead about products and services from authorised websites. In
addition to this, it has been identified that present organisation effectively ensure that
there customers provided with every related information. With the help of this company
can effectively able to conduct their functions while being ensuring positive brand image
in marketplace.
Further this has been evaluated that, all these compliances effectively impact upon
decision making process of Carnival Corporation & PLC. Thus, it is essential for organisation to
effectively understand all these compliances as to implement necessary rules as well as
regulations in an appropriate manner.
P7 Different forms of financial statements
There are different types of financial statements that are required to be effectively
manage and form by organisations in order to conduct functions and activities of finance in best
effective manner. Financial statements mainly aim to record daily basis transactions in an
appropriate manner.
Income statements: It is mainly defined as a financial statement part that mainly include
present company actual level of performance. Income statement is mainly issued by organisation
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dealing in public sector. In addition with this, income statements acts as most essential aspect of
an entity financial performance.
Balance sheet: Balance sheet mainly include cash outflow as well as inflow in addition
to this, it also include liabilities and assets. It is important for finance manager of respective
industry to make sure that balance sheet are appropriately prepared as to conduct activities in
best effective manner.
Evidence of changes in equity: It is mainly linked with occurrence of change that mainly
undertake place in around of equity within proper time frame.
M2 HR life cycle importance
HR life is one of most important segment in order to manage issues related to staff
retention in best effective manner. In addition to this it will also benefit them to recruit potential
as well as skilled employees and further increase their knowledge by offering them respective
training. This has been identified that HR manager of Carnival Corporation & PLC is facing the
issue related to staff retention as waiters and waitresses have problem related to working
conditions and are refusing to do extra work etc. In this HR manager is required to recruit new
candidates. Further they are required to make significant improvement in their professional skills
through effective training and development courses. In addition to this HR manager is also
required to offer attractive benefits and rewards to their employees in order to increase staff
retention.
P8 Budget Importance
With the help of maintaining budget in a proper and effective manner an organisation can
effectively able to operate their functioning in a well defined and cost effective manner. This will
also allow them to overcome financial hindrances in best effective manner. Certain essential
elements of budget is being defined below:
 Budget is most important aspect in any organisation despite of their size and scope. In
context with Carnival Corporation & PLC budget acts as key essential aspect, thus entity
is required to prepare financial statements in an appropriate manner while undertaking
different types of financial tool. This will allow entity to overcome financial turmoil in an
effective manner (Budeanu, and et. al., 2016).
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 With the help of proper form of budget Carnival Corporation & PLC can operate
activities and operations of their different sector such as accommodation, food and
beverage sector and more.
M4 Interpretation of financial statements
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In accordance with financial reports as well as statement of firm in Carnival Corporation
& PLC, it has been defined that organisation overall business performance revenue in the year
2018 is $18,881. While operating cost as well as expense of company is $15.556. In addition
with this operating income of entity is 3,325 along with net income of $3,152.
CONCLUSION
According to report, travel and tourism is one of the leading and growing industrial sector
in which there are number of segments offering wide range services to customers. In this report
revenue management plan is also include with the help of which entity can effectively able to
manage revenue of organisation. Further this has been evaluated that, there are different types of
legislations and laws associated with travel and tourism sector that are required to be abide by
organisations involved within respective sector. This will allow entity to make significant
increase in their profitability and productivity.
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REFERENCES
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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.
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