Travel and Tourism Business Analysis: A Shangri-La Hotel Case Study

Desklib provides past papers and solved assignments for students. This project analyzes the Shangri-La Hotel's business strategies.

TRAVEL AND TOURISM BUSINESS
TOOLKIT
1

Table of Contents
INTRODUCTION.......................................................................................................................3
TASK 1.....................................................................................................................................4
P1 DISCUSS THE RATIONALE AND PRINCIPLES OF REVENUE MANAGEMENT FOR THE
TRAVEL AND TOURISM INDUSTRY.......................................................................................4
P2 INVESTIGATE HOW A SPECIFIC SECTOR OF THE TRAVEL AND TOURISM INDUSTRY
APPLIES REVENUE MANAGEMENT TOOLS TO GENERATE AND MAXIMIZE PROFIT................5
M1 ANALYSE THE IMPACT OF DIFFERENTIATED PRICING STRATEGIES ON REVENUE
MANAGEMENT IN A SPECIFIC SECTOR OF THE TRAVEL AND TOURISM INDUSTRY................6
TASK 2.....................................................................................................................................8
P3 REVIEW THE DIFFERENT STAGES OF THE HR LIFE CYCLE APPLIED TO A SPECIFIC TRAVEL
AND TOURISM JOB ROLE, AND THEIR IMPORTANCE FOR RETAINING AND DEVELOPING
TALENT................................................................................................................................8
P4 DEVELOP A PERFORMANCE MANAGEMENT PLAN FOR A SPECIFIC TRAVEL AND TOURISM
JOB ROLE, APPLYING TECHNIQUES TO RESOLVE NEGATIVE BEHAVIOUR AND TO OVERCOME
ISSUES OF STAFF RETENTION.............................................................................................10
M2 EVALUATE THE IMPORTANCE OF THE HR LIFE CYCLE IN RELATION TO STRATEGIC
TALENT MANAGEMENT AND OVERCOMING ISSUES OF STAFF RETENTION.........................12
TASK 3...................................................................................................................................13
P5 EXPLORE SPECIFIC LEGISLATION THAT ORGANISATIONS IN THE TRAVEL AND TOURISM
INDUSTRY HAVE TO ADHERE TO........................................................................................13
P6 USING SPECIFIC EXAMPLES, ILLUSTRATE HOW COMPANY, EMPLOYMENT, AND
CONTRACT LAW HAS A POTENTIAL IMPACT ON BUSINESS DECISION-MAKING IN THE
TRAVEL AND TOURISM INDUSTRY......................................................................................14
M3 EXAMINE THE POTENTIAL IMPLICATIONS OF REGULATIONS, LEGISLATION, AND
STANDARDS ON DECISION-MAKING IN THE TRAVEL AND TOURISM INDUSTRY..................15
2

TASK 4...................................................................................................................................16
P7 EXPLORE THE DIFFERENT TYPES OF FINANCIAL STATEMENTS AND REPORTING
MECHANISM FOR ORGANISATION WITHIN THE TRAVEL AND TOURISM INDUSTRY............16
P8 EXPLAIN THE IMPORTANCE AND VALUE OF BUDGETS FOR CONTROLLING BUSINESS
PERFORMANCE AND IDENTIFYING VARIANCES..................................................................17
M4 INTERPRET FINANCIAL STATEMENTS AND REPORTS FOR ORGANISATIONS WITHIN THE
TRAVEL AND TOURISM INDUSTRY......................................................................................18
CONCLUSION.........................................................................................................................20
REFERENCES..........................................................................................................................21
3

INTRODUCTION
With the rapid change in the living standards of the people, there has been an increase in the
facilities provided to the people within the marketing and the business environment, the one
such sector which has changed the most is the sector dealing with travel and tourism for the
people, the popular company recognized is the Shangri-la hotel of UK, where development and
the growth in business deals with various sectors defined as the important asset of the
organization which includes the strategies dealing with the human resource management,
where the revenue management is classified as an important factor in determining the overall
profit generation within the organization, which helps in managing the business according to
the demand of the people (Curcija et al., 2019).
The hotel named Shangri-la is the multinational company founded in 1971 and headquartered
at Hong Kong, dealing with the hospitality management, where the hotel Shangri-la is the part
of the Shangri-la international hotel management, where Robert Kuok is the founder of the
company, the company has expanded its empire throughout the world by facilitating 100 luxury
resorts and hotels having 40,000 rooms across the countries situated in Asia, Europe, Australia
and North America. The company has 5 brands within the different segments of the market
(Fletcheret al., 2017).
Figure 1: Shangri-la hotel
4

Source: (Fletcheret al., 2017).
5

TASK 1
P1 DISCUSS THE RATIONALE AND PRINCIPLES OF REVENUE MANAGEMENT
FOR THE TRAVEL AND TOURISM INDUSTRY
In the field of the hotel industry the revenue management is recognized as the recent and the
important issue within the hotel management, as such type of management provides the path
to generate the maximum amount of revenue within the defined budget, which helps in
defining the budgets in accordance with the valuable assets consisting of the way of setting the
prices for the supply and production within the business, defining the appropriate set of
measures according to the situations that arise within the business environment. In the
Shangri-la hotel, the different sets of principles dealing with revenue management are
applicable over the business environment. It helps in defining the need for the accurate pricing
strategy due to which the effective set of procedures and techniques are applied over the
business environment (Mbaiwa, 2017).
To choose for the best set of products over the best path, revenue management has been used,
by defining the delivery of the right set of products and services to the right customers defining
satisfaction within the customers. The revenue management can be defined as the combination
of Inventory, Pricing, Marketing and Channels, where pricing is defined as the building block of
the entire revenue management along with the varieties of product which are based on the
management associated with room charge, the change within the products and the services has
been done according to the demand of the customer within the hotel. To define the charge in
association with the best room allocation to the customer, Inventory room management is
determined. Apart from this to increase the profit within the organization the activities and the
promotion has been done to provide the development and growth of the business.
The channel distribution includes the services provided to the customers by the sensitivity of
price and the channels being provided on the basis of allocating the room’s rate, contributing
towards the management of the customer by the set of measures taken on the loyalty basis in
Shangri-la hotel (Coles et al., 2017).
6

7

P2 INVESTIGATE HOW A SPECIFIC SECTOR OF THE TRAVEL AND TOURISM
INDUSTRY APPLIES REVENUE MANAGEMENT TOOLS TO GENERATE AND
MAXIMIZE PROFIT
The sectors within the tourism dealing with the hospitality management of the customers are
determined and focus with the motive to implement the various tools of the revenue
management in order to generate the maximum amount of profit within the Shangri-la hotel.
The barriers and the challenges which are analyzed along with the demand of the services in
the hotel rooms are managed by the control fare capacity. The hotel provides the trial for the
revenue management in order to analyse the barriers with respect to the time limitations,
where the concept of differential pricing is implemented in order to increase the version
associated with the pricing in terms of peak load and the number of customers visiting the
hotel and the types of services demanded by the customers (Nicoli and Papadopoulou, 2017).
With the aim to merge the cost differences over the customers and pricing sensitivity, the yield
management system can be used along with the fences rate, which helps in creating the new
set of ideas which enhance the productivity and growth along with the academic executives
within the organization, thus this type of approach is being implemented within the Shangri-la
hotel which helps in meeting up the demands of generation, optimization, management and
integrity in terms of revenue (Kurgun et al., 2018).
In order to interpret the improper profits and the value of the returns during the seasonal time
periods the business associated with hotel can be defined on the basis of the non-linear and
monopolistic competition defined by the specialised situations to define the price, where to
handle the situations of the buyers along with the variable trade conditions, the optimization of
revenue and profit is defined as the most suitable method within the situation, leading to the
exploitation of the buying attitude along with the will to pay for the correct price, which could
lead to the increase in the potential demand with the decrease in the potential profit
generation (Nicoli and Papadopoulou, 2017).
The Shangri-la hotel aims to achieve the maximum amount of profit generation by satisfying
the demands of the customer in terms of providing the best set of rooms and services defined
within the budget of the customers by creating the transparent relationship with the customers
8

which increase the faith over hotel by the customer in terms of prices and the quality of
services offered by the hotel staff and management (Kurgun et al., 2018).
M1 ANALYSE THE IMPACT OF DIFFERENTIATED PRICING STRATEGIES ON
REVENUE MANAGEMENT IN A SPECIFIC SECTOR OF THE TRAVEL AND
TOURISM INDUSTRY
As discussed above, pricing is defined as one of the most important terms in the sector of
marketing as it provides the way of differentiating among the set of the services and products
with the pre-defined set of the objective. In Shangri-la Hotel the prices are defined according to
the rise in the demand of the services and the type of rooms preferred by the customers, which
helps in the increase of perish inflexibility and capability along with the utilization of the
delicate inappropriate inventory stock, adding the option to accept the practices related with
the revenue management for the customers. The discount and the benefits are provided to the
customer during the off-season with the aim to attract the major number of the customers
resulting in the increase in sales, which has been done by providing the attractive discounts
over the defined room rate, providing the opportunity for the customers to experience the
luxury facilities and services at the decreased price and it also creates the opportunity for the
hotel to build a loyal relationship with the customers (Vogel, 2016).
On another hand, the differential pricing strategy serves beneficial for the company to deal
with the upcoming circumstances and demands. The hotel offers the attractive set of coupons
to the people belonging to the specific group in order to manage the premium products, where
the discounts are provided to the customers at Shangri-la hotel, for determining the set of the
services provided to the customers and implantation of different pricing strategies helps in
analysing the different marketing segments along with the variation in the prices with respect
to the demand of services and products (Ampountolas, 2016).
The function of marketing within the organization is to analyze the set of the services by
promoting the prices of the products and services among the variable groups which provide the
comparison of prices in accordance with the limited data and information in terms of pricing. In
the field of hospitality the business customers are prevented from the direct purchase of the
tickets defined over the discounts, which can force the business customers to determine the
9

non-transferable scheme over the tickets, to enforce the requirement of the minimum
conditions for staying and the requirement of the advance tickets in order to experience the
best set of services in addition with the quality of the services, the implementation of such type
of strategy can contribute to meet the problems associated with the average earnings of the
business (Alonso et al., 2018).
The Shangri-la hotel achieves the success in creating the attention of the maximum number of
customers and the travellers from all over the world over the set of the services and the
products offered by the company by implementing the flexibility and the quality of service4s for
the customers which makes the customer happy in terms of the services provided in the limited
budget, as the result of which the organization has increased the overall sale of the company by
increasing the number of the target groups in the company due to which the achievement of
the small targets constructs the platform of establishing the empire in the maximum parts of
world (Dhir, 2019).
10

TASK 2
P3 REVIEW THE DIFFERENT STAGES OF THE HR LIFE CYCLE APPLIED TO A
SPECIFIC TRAVEL AND TOURISM JOB ROLE, AND THEIR IMPORTANCE FOR
RETAINING AND DEVELOPING TALENT
For the successful implementation of the set of services provided the customers of an
organization, the implementation of the HR lifecycle within the organization in an effective way
plays a vital role for enhancing the profit generation capabilities of an organization. In Shangri-
la hotel, the different stages and the levels associated with the successful delivery of the
services has been defined as the unique way of determining the effective services. The tourism
manager within the company helps in maintaining the appropriate lifecycle in terms of the
business environment (Cascio and Boudreau, 2016). The successful implementation of the HR
lifecycle under the organization also helps in identifying the hidden talents within the
employees and also contributes in defining the sustainable growth of the organization, defining
the retention of the people to achieve the successful development of the company, the
elements defined in the HR lifecycle in association with the Shangri-la hotel is defined as the
following:
RECRUITMENT
It has been defined as an important and essential part of the lifecycle, as it is the initial point
from where the growth of the business is determined. The Shangri-la hotel serves to hire the
employees which aim to accomplish the set of tasks and procedures defined by the
organization, as the growth and the productivity of an organization is directly dependent on the
type of employees being hired, the company serves to hire the set of people which have the
capability to provide the best set of services to the customers in the effective way. The
company also offers the set of various training methods and the attractive set of offers with the
aim to find the best talents for the organization (Bailey et al., 2018).
EDUCATION
This term plays an important role at the time of dealing with the new set of tasks and the
services defined within the organization, the company expects the employees to provides the
11

best of the knowledge towards the work provided to the employees leading to the successful
implementation of the tasks, in order to achieve the effective output from the employees, the
company provides the training sessions under which the sufficient amount of knowledge is
provided to the employees necessary to deal with the upcoming situations within the company,
the effective way of communication-related to the tasks is provided by the senior authorities of
the company to assure that the clear understanding of the task is provided to the employees
for the effective implementation of the set of services needed within the growth of the
organization.
MOTIVATION
To increase the capability of the employees within the organization it serves necessary to
appreciate the set of the tasks performed by the employee in the correct way, in order to build
the confidence among the employees to deal with the new and the upcoming situations. In
Shangri-la hotel, in past few years the hotel had faced the high turnover rate which resulted in
the rise of demotivation within the employees, leading to the ineffective implementation of the
tasks, to overcome such situation the agreement system has been introduced by the company
for the new employees which lay emphasis on the timely delivery of the tasks along with the
commitment to work for the company (Madera et al., 2017).
EVALUATION
This level can be defined as the level at which the critical analysis in relation to the performance
of the employees has been done by the senior authorities in order to calculate the rise in the
performance of the employees. In Shangri-la hotel the performance evaluation of the
employees is based on the way of providing the set of services to the customers, the employees
working in an inefficient way are retained from the job, whereas the employees working with
full determination are appreciated by providing the prizes and the rewards. The evaluation of
the employees is also done on the basis of the feedback provided by the customers by their
experiences.
CELEBRATION
This term is implemented within the company when the satisfactory delivery of the services
and the products have been provided to the customers. In the Shangri-la hotel, the celebration
12