Travel and Tourism Business Toolkit: Revenue, HR, and Finance Analysis

This report delves into the operational and financial aspects of the travel and tourism industry, using Trafalgar as a case study. It begins by explaining the principles of revenue management, including market segmentation, forecasting, and pricing strategies, emphasizing their importance in maximizing profits. The report then explores the application of revenue management tools such as PMS, dynamic pricing, direct booking incentives, and demand-based distribution. Furthermore, it examines the HR life cycle, from recruitment to employee development, and the development of a performance management plan for marketing managers, including techniques to address negativity. Finally, the report analyzes financial statements and the role of budgets in controlling business performance, providing a comprehensive overview of key business functions within the travel and tourism sector.

The Travel and
Tourism Business
Toolkit

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain the reason and principles of revenue management in travel and tourism industry...3
P2 Investigate travel and tourism industry applies revenue management tools in their
organisation for generating and maximise profits.......................................................................4
TASK 2............................................................................................................................................6
P3 Explain the different stages of the HR life cycle that applied to travel and tourism job role,
and their importance for retaining and developing talent...........................................................6
P4 Develop a performance management plan that consists job role and applying techniques
that overcome negativity.............................................................................................................7
P5 Explore specific legislation in travel and tourism industry...................................................9
P6 Illustrate how company, employment and contract law has impact on business decision-
making with specific examples.................................................................................................10
TASK 4..........................................................................................................................................11
P7 Explore the different types of financial statements and their mechanisms..........................11
P8 Discuss the importance of budgets for controlling business performance..........................12
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16
Books and Journals:..................................................................................................................16

INTRODUCTION
Travel and tourism is one of the emerging new business that becomes very popular and
also gives a great contribution to the domestic income of the country (Lin, Lin and Chen, 2017).
It is very important for countries in this time that they more focuses on travel and tourism
industries so that they can explore more employment and revenue generation opportunities. It is
obvious that every organisation need revenue to survive and sustain in the market. So that's why
it is important for organisation that they know management of revenue in their organisation.
Revenue management is the important concept that should be understand by the organisation so
that they can take right decision to maximise their profits and sales. Revenue management is the
activity that perform by manager of the organisation to control and manage revenue in the
organisation in effective and efficient way. In this context, Trafalgar is undertaken for this report
that is the British company run in all over the world. Trafalgar is serving their services from 70
years to people. It is one of the most leading organisation that run their business very well. This
report covers all important concepts such as revenue management, HR life cycle, performance
management plan, financial management, etc.
MAIN BODY
TASK 1
P1 Explain the reason and principles of revenue management in travel and tourism industry
Revenue management is the method that analyse the consumer behaviour at micro level
not macro level in this way that they optimize availability of products and deciding the best
prices of the products so that they can get maximum revenues (Dube and et. al., 2018). Revenue
management is the important application that is used for the management and controlling of
revenue in the industry so the organisation can easily take decisions accordingly. It help in taking
many decisions such as purchase and investments of organisations. It is compulsory for
organisation if they want to not waste their revenue in unnecessary things. Trafalgar is one of the
travel and tourism company that needs to analyse the consumer behaviour so that they can adopt
the best strategies of pricing to increase their sales and revenues.
Importance of revenue management:
Forecasting: With the help of revenue management, Trafalgar can easily forecast the
needs of consumer by understanding the behaviour and their needs and wants.

Increase revenues: It is one of the most important benefit that get from the management
or revenue is to increase revenues (Guo and et. al., 2018). Trafalgar make estimations about their
demands and then generate their services according to them with reasonable and affordable
prices by the customers that raise sales which generate revenues.
There are some important principles that should be understand so that company can use
them in their organisation:
Market segmentation: It is the most common principle of travel and tourism industry
but it is important also. Because it helps to segmented into small parts of the big market that they
want to focus on them. For example, Trafalgar selected one place for travelling that is very
enthusiastic and have some historical developments that touch the feelings of traveller.
Historical Demands and Booking patterns: After that Trafalgar analyse the booking
patterns in which customers do generally for travelling purpose. It can be done with the study of
historic demands by customers that what they want to see.
Demand Forecast and Displacement analysis: Now it is a turn of demand forecasting
after the brief study of historic demands. When organisation already study about the booking
patterns then they forecast demands accordingly.
Pricing & Inventory management: Pricing can be easily forecast and decide by the
organisation so that customers get attracted by the price of products and raise demands.
Overbooking: it is also very important for the organisation that they should take care
about overbooking because overbooking raise overstock that can be obsolete (Szpilko, 2017).
P2 Investigate travel and tourism industry applies revenue management tools in their
organisation for generating and maximise profits
There are number of tools that present in travel and tourism industry. All of them are
important to apply so that they can give maximum revenue to organisation. There are main four

key tools that help to reduce the complexity of task. Organisation use revenue management tools
in travel and tourism sector so that they can remove all the unnecessary factors which is not
appropriate for their growth and success. They are very important for Trafalgar so that they can
generate and maximise their profits. The important four tools of revenue management are given
below:
 PMS(Property Management System): It is one of the important tool of revenue
management that helps to attract customers by giving and creation of perfect guest
experience. It is one of the tool that should be select by taking time that suited to their
needs and preferences. It helps to make the work easier so that they can serve the best
experiences to customers by Trafalgar. It can be noticed that organisation take most care
on selection of PMS tool (Postol and et. al., 2020).
 Dynamic Pricing: It is very interesting for customers that they get different prices or
cheaper prices when the season is not for travelling. It is the most effective tool that
attracts customers even in off season. Generally it is seen that Trafalgar set prices
according to the location but it can be reduce with the change of season that means at that
time when company doesn't has many number of customers then they can fluctuate their
prices according to them.
 Direct Booking incentives: It can be become crucial tool of revenue management
because in this tool Trafalgar give some incentives to customers if they choose direct
booking with their company. That means there are number of other mediators or agencies
that provide booking facilities of travel and tourism company. But if customer want to
enjoys some other benefits or incentives then they can go for direct booking with
company i.e. to remove all the mediators and agencies.
 Distribution based On Demands: It is analysed from the survey of travel and tourism
companies that they should be distribute on the basis of demands. It consists of both
ticket office bookings and OTA. It is very beneficial for reducing the queues on tickets
bookings. Customer get more satisfied with this techniques and tools. Because now they
are not facing any queues of booking of tickets (Marasco and et. al., 2018). It becomes
necessary for all types of travel and tourisms company because it really helps in raising
customer satisfaction.

Above mentioned tools are very important for generating profits in the organisation
because they all are increasing customer experience and this become attractiveness of customers
that they can book more and more from the company.
TASK 2
P3 Explain the different stages of the HR life cycle that applied to travel and tourism job role,
and their importance for retaining and developing talent
It is analysed that human resource plays a important role in organisations. Because it is
one of the resources of company that becomes most active part in success and growth of the
company. Human resources is very important part of the company. Because company is run by
people and for people that means basically company is for people. So it is very important for
organisation that they should take proper care with the allocation of people to the jobs according
to their skills and jobs. So that's why it is important for the organisation that they should go for
making their employees so well that helps to increase profitability and productivity. It is also
very important for retaining and developing of talented employees in organisation. There is HR
life cycle that helps to manage and control the human talent in the organisation so that they can
grow and success in the organisation. There are 5 important stages in HR life cycle that is very
important for the organisation to follow them wisely if they want to survive and grow in the
market. For HR life cycle a job role is undertaken for analysing the impact on receptionist. It is
necessary for all types of organisation whether it is travel and tourism industry. The detail that is
mentioned below:

 Recruit deliberately: It is the first and foremost function of the company in which they
have to invite a pool of candidate that are interested in their jobs. It is important for the
organisation that they can invitee people through most appropriate source that they
thought. They invite talented candidate that has skills and experience of their related job
profile and then they select the most appropriate candidate that is suitable for
organisation. It is the first stage that focuses on finding a appropriate number of
candidates that are required for receptionist.
 Educate continuously: Now it is the time to train people or employee so that they can
improve their performances according to the needs of organisation. Receptionist should
be train so that they can easily handle their customers for giving information. They
should generate those skills and knowledge that is essential for the completion of task or
job (Filipiak, Dylewski and Kalinowski, 2020).
 Provide organized development: In this stage they are developing some important skills
and knowledge with the help of practical knowledge. It is the development of personality
of employees of Trafalgar in an organized manner so that they can improve their
productivity as well. Receptionist required some skills so that they can perform their
activities very well such as problem solving skills.
 Encourage harmonious departures: Every company needs to harmonious nature of
employees so that they can avoid maximum problems and conflicts in business. It is very

necessary for peace of the employee that encourages productivity in the organisation.
Harmony nature is very important for receptionist as they can easily handle the problems
and issue of their customers.
 Prioritize continual evolution: Now most important stage of HR life cycle is manager
needs to continuous evolution of performances performed by employees so that manager
can find any deviation or differences that occur in the organisation (Jogaratnam, 2017). It
is very important for organisation that they take evaluation for their receptionist so that
they can take corrective actions if they found any deviations as compared to expected
with actual performances.
P4 Develop a performance management plan that consists job role and applying techniques that
overcome negativity
Performance management plan is very important for identifying difference of
performances that performed by employees in Trafalgar. It is very important for identifying facts
and figures of performance management plan. In this plans, organisation can take objectives of
specific job role in which they can decide success criteria, support and outcomes. It is very
helpful in overcoming issues of staff retention in organisation.
Job Title Marketing manager
Department Marketing Department
Company Trafalgar
Date 2nd January 2021
Improvement
objectives
Success Criteria Additional Support
required
Objective outcome
To minimising
negative behaviour or
attitude of employees
in organisation
It is very important for
organisation that they
should remove or
eradicate negative
attitude of employees
from the organisation
so that they can
To improve the
performances of
employees
organisation have to
implement all
important
development programs
In the context with
Trafalgar, it is
analysed that they gain
potential outcome
from the
implementation of
training and

maximise their
profitability and
productivity. It can be
done with the help of
application of training
and development
programmes in
organisation so that
they can give some
motivations and
encouragements to
employees that remove
their negative
behaviour.
in organisation so that
it increase the
productivity and
performances of
employees in
organisation.
development programs
in organisation.
Overcoming with the
important issue of
talented employees in
organisation
For retaining of
talented staff or
employees in the
organisations, it is
important to take
feedback from
employees who are
leave their job role so
that they can act
accordingly.
It is very important for
marketing manager
that they should take
review from
employees at weekly
or on monthly basis so
that they can reduce
the issue of employee
turnover issues.
By using appropriate
approaches in
organisation which
helps in retaining
talented staff in the
organisation so that
they can increase their
growth and success.
It is analysed from the above discussion that organisation should find out some gaps that
helps to reduce them because they are the reason of low productivity in organisations. In travel &
tourism industry employees plays a major role in the organisation because they are persons who
take all responsibility to serve best customer experiences (CHAMIDAH, GUNTORO and
SULASTRI, 2020).

P5 Explore specific legislation in travel and tourism industry
In order to operate the functions smoothly in the dynamic industry, Trafalgar Square
needs to follow certain legislations. This will ensure effective government support and helps in
securing the company from complex legal issues. In addition to this it is necessary for the
company to follow these rules and regulations which will help in protecting the interest of the
employees of the company. These legislations can be described as follows: Health and Safety Act, 1974: This act is introduced in order to safeguard the employees
while they are working in the practical working environment. With this the employees
and guest of Trafalgar Square will feel secure as the hotel is ensuring their health safety.
With this the hotel is adopting the strategies in order to make the working environment
safer for the employees (Thomas, 2017). Employment Law: It is identify that in travel and tourism organisation they need to
comply all legal rules related to employment laws. It includes health and safety of
employees, timing of employees, etc. If they are properly followed then they can achieve
their target with compliance of all legal legislations. Contract law: It is the law that covers all agreements that made between two companies
so individual for a specific purpose. If they breach their contract then according to
contract law they are liable for negative impact on breaching. It gives positive impact on
business if they properly follow because it helps in handling all legal actions. Equality Act, 2010: This act have been introduced in order to ensure equality among the
employees at the workplace. This will help the hotel in eliminating discrimination and
inequality from their workplace. The inequality is done on the basis of religion, caste,
gender and so on. The hotel ensure to remove these factors that encourage inequality by
adopting teamwork strategy.
 Minimum Wages Act, 1998: As per this act, it is required for every company to provide
minimum wages to the employees in order to meet their expectations form the company.
Trafalgar Square must design jobs which will fulfil the requirements of this act. Due to
which the employees will be able to get minimum pay for the work which have been
performed in the working environment.
Hence, these are the legislations that must be followed by Trafalgar Square in order to
ensure effective working environment.

P6 Illustrate how company, employment and contract law has impact on business decision-
making with specific examples
There are number of laws that present in travel and tourism organisation that should be
followed by the organisation so that they are come under in those organisation which are
adhering all rules and regulations (Nurjaya, 2018). It is important for organisation that they
should follow rule and regulations so well that they will not face any legal issues in their
organisation. Some important laws that are mentioned below:
Contract Law: It is the most important law that organisation should adopt so that they
can make their rights in signed contract. It is the most appropriate recommendation to the
companies to Trafalgar that they should properly analyse all facts of contract acts so that they
can apply them in their organisation with an objective of taking their all important benefits.
Company Law: It is the acronym of corporate law that has separate legal entity from
their shareholders (Rogerson and Rogerson, 2020). It is important for companies that they follow
company law in their organisation so that they can take decisions accordingly. In company law,
organisation have some liability that can be limited or unlimited it depends on their article of
association and memorandum of association. It is important for organisation that they should
follow company law to compliance of all rules and regulations.
Employment Law: It includes all important activities that are working hours, holidays,
number of leaves, other facilities or amenities, etc. Employment laws is important for the
organisation because it helps to reduce the issue of conflicts between employer and employees. It
helps to improve employer and employee relationships in better way that they can be gain more
and more opportunities. For example, Trafalgar has faced a issue of non satisfaction by
employees because they didn't give leaves on occasions, in this way they violate employment
laws. To resolve this issue they can give some alternative solutions such as they can give
holidays on other days or some discounts on travel packages with their families and many more.
It really helpful to reduce the issue of non satisfactions (Kim, Park and Choi, 2017).
Above mentioned laws are very important to follow because it helps in legal situations
when some unnecessary give some allegations on their organisations then they can protect
themselves.

TASK 4
P7 Explore the different types of financial statements and their mechanisms
The documents and statements developed and designed by the management of an
organisation in order to exhibit and execute the financial position and performance of the
organisation in a specific time duration. It facilitates the Trafalgar in order analyse the financial
stability and health and to implement and introduce the strategies that can alleviate the same.
Financial statements are also taken into consideration so as to form important decisions in
relation with the organisational policies and procedures. The financial statement and mechanisms
that can be incorporated by Trafalgar in order to enhance the financial operations are as
follows :-
Income Statement
The income statement is a systematic statement that is required to depict the profits
generate and losses incurred by the organisation over a time phrase. The profit is calculated in
the statement by deducting all the incurred expenses of the organisation from operating activities
and non operating activities. This statement is utilised by Trafalgar so as to determine the overall
profit earned by the company (Lee and Kim, 2018). The income statement helps the company to
generate appropriate and accurate results in the business organisation. It provides the basis for
the assessment of the investors for the company. Income statement is also considered as one of
the major financial statements for a company as it provides important and essential insights in
regard with the tracking and measuring the organisation performance.
Balance Sheet
It is the concise summary of the financial balances of the business organisation. The balance
sheets are optimized by the company so as to determine the financial outline of the status of the
company to the potential investors. Trafalgar can capitalise on the balance sheets in order to
identify the risks associated with the financial decisions of the company. Balance sheets also
provides assistance in obtaining the useful ratios of the financial operations. Trafalgar can utilize
its yearly balance sheets so as to assure loans and capital from the massive financial institutions.
It also facilitates the organisation in reflection of their total assets and liabilities acquired by the
same. It is a blueprint of the current position of the business organisation in the market place.
Statement of Cash-flow

The cash-flow statement is designed by an organisation in order to identify,determine , analyse
and monitor the cash inflows as well as cash outflows of the company for a particular given time
phrase. It is responsible for proving necessary data in relation with the cash receipts as well as
cash payments in order to calculate and determine the overall net alteration in the cash. Cash
flow statements can be utilized by the Trafalgar in order to verify and examine the liquidity as
well as the profitability position of the respective organisation. It also facilitates the company in
management and regulation of cash in the concerned company. It further encourages and
enhances the planning and operations of the company by ensuring coordination and cooperation.
P8 Discuss the importance of budgets for controlling business performance
Budget is defined as an effective tool which is used by the company in order to define,
manage and control their expenses and utilise their revenues in an effective manner. It involves
sales, planned volumes, resources, cost and so on. This will help Trafalgar Square in analysing
the deviations in their workings as well as it will defined the importance of budget for the
organisation. The budget for Trafalgar Square is explained below: Predicting future Contingencies: Budget is prepared for predicting the future
emergencies as due to which the company can develop strategies for reducing their
negative impact of the contingencies on their working environment (Bitar and et. al.,
2017). It is very necessary for Trafalgar to predict the future emergencies as they can
secure their funds and revenues for that time. This will help in controlling that
contingency due to which their workings will not get disturbed. Helps in minimisation expenses: The budget also helps the company in calculating and
controlling their expenses which will ultimately enhance their profits in the near futures.
Trafalgar Square aims at reducing their expenses by adopting effective strategies. This
will help the company in performing their functions in a systematic way (Yunus and
Indrasari, 2017).
Interpretation of Financial statements

The financial statements of Trafalgar Square will define profit before tax from income
statement is amounted to 1744 and deduction of tax will be amounted to 1403. the calculation
with this respect is explained underneath:

Comparison of financial performance with the strategic targets: The above mentioned
ratios depicts that the company is projecting target for each items with the pre described
objective in order to calculate the variation (Ao, 2018).

CONCLUSION
It is concluded from the above discussion that travel and tourism industry plays a crucial
role in contribution in economy. As it generate a huge amount of income that really helpful for
country as well as global growth and GDP. It become very important for countries because it is
very supportive sector that receive support from government. Due to this thing, organisation
increase their presence in travel and tourism sector an create more employment opportunities.
This report covers revenue management tools and techniques that automates the task or
organisation that are actually taking too long period. It also cover HR life cycle stages in which it
shows the importance of HR practices and their application in organisation. This report give
focuses on performance management plan that helpful for evaluation of particular job role in
travel and tourism company. It also covers some important financial statements that become
important for organisations.

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