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

This report examines the Travel and Tourism Business Toolkit, focusing on four key areas: revenue management, human resource lifecycle, legal issues, and financial statements. The revenue management section explores essential principles like market segmentation, optimization, and overbooking control, highlighting their importance for organizations such as CostSaver. The HR lifecycle analysis covers recruitment, selection, training, and performance appraisal within the context of the travel and tourism industry. The report also addresses performance management plans designed to retain talented employees, including planning and implementation strategies. Furthermore, it explores the legal issues impacting the industry, including company, employment, and contract law, and their effects on business decision-making. Finally, the report details various types of financial statements and the importance of budgeting for business performance. The report aims to provide a comprehensive overview of the critical components of a successful travel and tourism business.

TRAVEL AND
TOURISM BUSINESS
TOOLKIT

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1) Important principles of revenue management in travel and tourism industry..................................3
P2) Importance of revenue management tools that helps to generate and maximize profits for travel
and tourism industry...............................................................................................................................5
TASK 2..........................................................................................................................................................6
P3) Human resource life cycle and their different stages with a specific travel and tourism jobs role....6
P4) Performance Management Plan that helps to retention of talented employees in organisation.....8
TASK 3..........................................................................................................................................................9
P5) Legal issues that affect travel and tourism industry and some important legislation that should be
adhered by industry................................................................................................................................9
P6) Illustrate how company, employment and contract law has a potential impact on business
decision-making in the travel and tourism industry..............................................................................10
TASK 4........................................................................................................................................................11
P7) Different types of financial statements for travel and tourism industries.......................................11
P8) Importance and value of budget for business performance............................................................12
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13
Books and Journals:...............................................................................................................................13

INTRODUCTION
Travel and tourism industry is the new component of GDP contribution to the economy.
It is the new emerging factor that contributes in GDP of economy. So it is necessary that travel
and tourism industry should make their revenue management (Nikraftar and Hosseini, 2016).
Revenue management is the activity that performs for forecasting future demand through
analysing past and current bookings in travel and tourism industry. Revenue management is
found and apply by airline and then it comes to travel and tourism industry. It is a science or art
that used to make maximum prophets with accurate forecasting demand. It is important concept
for travel and tourism industry because it is applied by this sector. In this context, CostSaver is
undertaken for analysing revenue management tools that helps to maximize travel and tourism
industry profits. CostSaver is the travel and tourism organisation of UK that provides tourism
services to the customers at reasonable price. This report helps to analysing different stages of
HR life cycle that helps to retain talented employees in the organisation. It also covers
performance management plan that helps to increase employee’s performance and productivity
which directly helps to achievement of goals and objectives.
MAIN BODY
TASK 1
P1) Important principles of revenue management in travel and tourism industry.
Revenue management is the important concept for raising profitability of organisation. It
is generated for travel and tourism industries because it forecast future demand on the basis of
current and past data of bookings. Revenue management has three important components that are
pricing and product distribution (Byung and Sam-Hun, 2018). So for CostSaver, it is necessary
to understand the value management and their key principles that help to apply appropriate and
proper way. It helps to face challenges like this pandemic situation i.e. COVID-19 that effects
the organisation very badly especially travel and tourism industry because all travelling are stop
from long period. Important principles of revenue management are mentioned in following
points:

Market segmentation:
It refers to the division of market into smaller target so that organisation can focus on
each target by dividing groups accordingly. It is the first and important key principle of revenue
management in which the separation and segmentation of market can be access by organisation
(Soh, Puah and Arip, 2019). It is one of the important concept and tool for organisation which
helps to divide big task into small segment. With the help of market segmentation travel and
tourism industry like CostSaver segment the market and then make the policies and programs
accordingly. It helps to focus on each and every part of place because for travel and tourism
organisation it is necessary that each place is good and attractive so that customer take good
experience. So that's why market segmentation is important component for success in the travel
and tourism industry.
Optimisation
One of the important factor and resource is to utilise available or limited resource in such
way that they are optimised fully. It raises productivity and profitability of the organisation and
helps in revenue management. When organisation plan revenue management than they should
consider the optimisation of available resources. So that they forecast exact and accurate demand
that helps to raise profitability of CostSaver. CostSaver is always focusing on saving the cost of
customer so that they can travel with their limited funds. So it is the very important principle in
revenue management that they should consider (Kelly, 2017).
Overbooking control
The main hurdle that comes in the path of success and growth of CostSaver is over
bookings especially after COVID-19. Overbooking refers to the access booking in advance
which in curse cost for organisation and the customer cannot access the hospitality services given
by travel and tourism industry. It creates much expenditure that occurs because of over booking
in advance. So it is necessary in revenue management that when costsaver decide or forecast
future demand then they should consider controlling over bookings.
Historical demand and booking patterns

When CostSaver forecast their demands of bookings in their organisation through the
revenue management system than they should consider this principle i.e. historical demand and
booking patterns (Kasimati, 2016). It would be become beneficial for the organisation through
analysing the previous demand that helps to forecast future demand. It can be done by
identifying the booking patterns that gives the basic and important knowledge to the organisation
that how customers book their bookings and at what time period. It helps to forecast easily.
P2) Importance of revenue management tools that helps to generate and maximize profits for
travel and tourism industry.
Revenue Management is very important for the organisation success and good because it
has to forecast the future demand. It is clearly analysed from above mentioned information of
about this concept. Travel and tourism industry is the new sector which becomes new form of
business that contributes in economy, that's why they need revenue management tools so that
they increase their profits and productivity. Revenue management tool is bucket in which
organisation used tools for increasing their profitability. It helps to grasp best market
opportunities that increase efficiency of company productivity. In UK, CostSaver there is a very
good role in terms contribution in economy. So that's why they need some revenue management
tools. Some important tools are mentioned in the following points:
Capacity utilisation
It is one of the important tool that provides efficiency in productivity with the proper use
of available resources in company even in this pandemic situation i.e. COVID-19. Capacity
utilisation referred to optimum utilisation of 10 class resources in travel and tourism industry. It
is very beneficial for the organisation growth and success because it helps to increase in
efficiency in performance of employees that raise productivity. CostSaver is focus on saving cost
of unnecessary expenditures that directly helps to both parties whether it is the organisation or
customer (Rao and Krantz, 2020). It can be only done one the travelling company utilise
optimum resources which reduced cost or optimum utilisation of scarce resources.
Discount allocation
It is one of the important tools that attracts customer to use their services. Any person can
attract with discounts available in travel and Tourism Company. CostSaver provides many types

of benefits to customers such as discounts offer and other offers. Employees and customers that
they enjoy organisation services. Discount allocation is important for the organisation needs to
attract customers for purchase their goods and services. Travel industry specially focuses on
discount offers because customer identifies those travel companies that give many place offer
with minimum cost.
Duration control
It is very highly demanded and travel and tourism organisation because the long duration
give always losses due to neglecting by customers. It is very important because the travel
companies need some vacant rooms for multi day request. So in this case it is important to
control duration travel and tourism trips.
Late booking strategy
It is one of the strategies that few companies adopted like CostSaver. In this strategy the
company focuses on last minute bookings that generally cannot available by any other
organisations (Seraphin and et, al., 2018). It is the point where the organisation makes different
from other ones. This type of facility builds goodwill and image and the marketplace that helps
to attract customers to take their services. it is very effectively in this pandemic situation to deal
with the downfall in COVID-19 situation.
TASK 2
P3) Human resource life cycle and their different stages with a specific travel and tourism jobs
role.
Human resource life cycle is important for organisation that provides different stages of
employees' life cycle in organisation. It shows ups and downs that faced by human resource in
the organisation and all related activities. It becomes harder in this pandemic situation. There
was some important stages of human resource life cycle of CostSaver are mentioned below:
Recruitment

It is the process in which the organisation invites of pool of candidates for their job role
that available in organisation. In recruitment process, CostSaver invites many candidates for
interview process so that they can select after the analysis of their knowledge and experiences.
Recruitment process is very important for selecting suitable candidate on job role because it is
the duty of human resource department that the take right decision. Recruitment processes done
by human resource department and day invite people from many resources. Main resources are
internal or external in which internal refers to invite existing employees relatives where is
external method is invited through jobs website, newspaper advertisement, etc (Jamal, 2018).
Selecting
The next and important step or stage and human resource life cycle to select most suitable
candidate for their job role. It is the stage the organisation needs to analyse the knowledge of
recruiting candidates so that they can take right decision regarding assigning job roles. CostSaver
select their employees with proper identification and evaluation of their skills and knowledge
that matches or meet their organisational goals and objectives. It is necessary for organisation
that individual goals are always related to their organisational goals and objectives.
Training and development programs
Now it is the time for educating selected new candidates that helps to adopt the business
environment easily. It can be only done by training and development programs that motivate
employees and give necessary knowledge for performing their job roles efficiently and
effectively. Training and development programs plays a very important role and success of
business because it is one of the most important tool that used by organisation for increasing the
productivity of their employees.
Performance appraisal
After assigning the job roles according to their skills and knowledge now company as
focuses on performance appraisal programs so that they motivate employees to increase their
productivity that helps in increase profitability of CostSaver. It is one of the important tool which
helps to encourage and motivate employees towards organisation goals and targets. Performance
appraisal can be done by mainly two ways that are monetary and non-monetary method. Both

have some separate importance in organisation success and growth. The applicability is only
depends on the nature of job roles and employees behaviour.
P4) Performance Management Plan that helps to retention of talented employees in organisation.
Performance management plan is crucial for increasing the efficiency of performance of
employees in the organisation that helps to increase profitability and productivity (Hillis and et,
al., 2020). It is one of the important plans that need by CostSaver to retain their talented
employees in the organisation. Performance management plan has certain important steps that
should be followed by possible when they make plan for organisation growth and success and to
retain their talented employees.
Plan
In the first step of performance management plan, CostSaver plan to make certain
important marketing strategies that helps to employees for improving and enhancing their
knowledge and skills in the marketplace. It is the important step because in this stage
normalisation focuses on increasing the growth of their employee’s performance. The plan
appropriate strategies and tools which helps to accomplish this goal.
Implement
Once the plan made, organisation focuses on implementation of plan according to the
staff that they are forecasting. Implementation is very important for organisation because if the
organisation does not implement the plan properly then they get negative effect.
Evaluate
Implementation of plan is not the end of process because the evaluation is very important
to see that implementation of plan is executed effectively or not (Park, Kim and Lee, 2017).
Evaluation is the process in which organisation focuses on the difference of actual and expected
performance. In this stage, CostSaver check implemented plan that they are rightly executed or
not.
Feedback

It is very important for CostSaver that they get comments or feedback from employees in
customers regarding their services. This is the important staff that gives actual or real image of
company. Company also focuses on employees' feedback that you understand or not the
organisation structure and policy.
Moreover, CostSaver takes various steps for job role of marketing executive. Some of the
important steps are discussed below:
Measure actual performance
Important step of CostSaver is to measure the actual performance with standard
performance so that they can evaluate the differences. In this is staff organisation measure the
actual performance with standard performance so that they can award the deviations occurred.
Taking corrective actions
When the organisation found some differences or deviations then they focuses on
important necessary actions that helps to improve performances of individual in the organisation.
In this step they plan that how the differences made with standard performances and improve the
performance of their employees.
Reviewing
The last but not least and ongoing step is to review performances on the regular basis
(Matthew and et, al., 2018).
TASK 3
P5) Legal issues that affect travel and tourism industry and some important legislation that
should be adhered by industry.
It is analysed that there are various types of legal issues that faced by travel and tourism
industry while running their business. The issues can be related to safety and security, food items
and cleanliness. These are the important issues that occurred in travel and tourism industries. So
that's the organisation need to apply for compliance of laws and regulations that helps to deal
with these issues.

The Tourism Act 2011
It is the important factor that promotes tourism sector in economy. It helps to analyse and
manage the needs of travel and tourism industry for welfare of customers. CostSaver is actively
participating in these issues by compliance of important act.
Food safety act 1990
In this act the government focuses on food safety for tourist or customers that provided
by travel and tourism company such as CostSaver. Because food is one of the item that eaten by
customers and directly effect on their body (Yunus and Indrasari, 2017). So it becomes company
duty that they should take care for food safety. Food is very essential part of any travel and
Tourism Company or industry because when the person wants to travel at some place than they
firstly decide their food.
Above two mentioned acts are very important for organisation growth and success. These
two important acts should be compliance by travel and tourism industry so that they can provide
best quality of services to the customers. Some important laws that come under COVID-19
policy should be considered.
P6) Illustrate how company, employment and contract law has a potential impact on business
decision-making in the travel and tourism industry.
In this pandemic situation, travel and tourism industry are more focuses on compliances
of all rules and regulations. Due to spread of COVID-19 virus food safety becomes a major issue
that reduce travelling. So to overcome with these issues it is necessary for travel and tourism
industry that they compliance all laws. Organisation made some decisions related to anything
then they should consider these laws because if they does not follow then companies get sue by
government or any individual (Hassan and Ekis, 2020).
It is important for the organisation that they are there all important rules related to food
security, cleanliness and environment laws. Because they are very important decision making
process. Even customer can get attracted because of compliance of these laws by organisation.
So it becomes the promotional tool that adopted by travel and tourism industry. When
organisation takes some decisions so they should consider these concepts. Because if

organisation cannot compliance laws then they could be fined by government. For example KFC
already find because of their employees are getting burn during performing their duties.
TASK 4
P7) Different types of financial statements for travel and tourism industries.
Financial statement is important to get real position of financial situations in the
organisation. There are some important financial statements that should be considered in travel
and tourism industry (Mohanty Khan, Yusoff and Kakar, 2017). Costsaver make their financial
statements through these following statements:
Income statement
It is very important for showing the exact and real financial position of company. Income
statement shows profit and losses that occurred in organisation.
Cash flow statement
It records all the transaction that are related to cost which helps to ascertain cost of
production or cost of services so that they can decide prices of travel and tourism trips for
customers.
Balance sheet
Another important tool that is mandatory for all types of businesses to analyse the
liabilities and assets of organisation so that they can take decisions accordingly. Travel and
tourism industries make balance sheets for ascertaining financial position so that they can decide
the purchase and sale of asset or liability.
Above mentioned statements require some important mechanism so that they can
effectively work and give exact information. Two important mechanisms are mentioned below:

P8) Importance and value of budget for business performance
Budget is the blueprint and list of all expected upcoming expenditures in future that could
be occur in future. It is very important for organisation because it helps to ascertain the cost that
can be occurred and make investments accordingly (Chen and Weicht, 2017).
Budget is a very important concept and organisation needs to improve business
performance so they make budgets. Budgets bifurcated each and every task with some allowed
funds that stop employees to spend unnecessary expenditures. It helps to save money from pre-
determined of funds. Budget is very helpful in controlling business performance because it
directs employees with their true guidance. After the panoramic situation of covid-19 it is very
necessary for the organisation that they make budget so that they can reduce unnecessary
expenditure.
CONCLUSION
It is concluded from the above discussion that revenue management is very important for
the organisation success and growth that it provides exact inaccurate forecasting of future
demands in tourism and travel industry. At becomes effective when the organisation follow key
principles of revenue management. There are some important revenue management tool that
helps to become more effective. Organisation perform activities done this should consider
performance management plan so that they can understand and analyse the performance of each
and every employee in the organisation. It is also analysed that after the pandemic situation it
becomes more important for the organisation that they need to adhere all important laws.
Because it leads to become business leader and promoting business growth and success. So
travel and tourism industry becomes the essential part of business environment as it contributes
in the economy.