The Travel and Tourism Business Toolkit

Travel and tourism industry is largest civilian industry across world. This industry is wide group businesses with one similar gaol in general, which is to rendering desired product or service to traveller. The above report includes exploring particular legislation which company in tourism industry had to follow. Report further carried forward with illustrates contract, employment and company law has possible effect on the decision-making across travel industry. Exploring various type of financial statement and reports execution for company across travel industry. Report ends with explaining value or significance of the budget for performance control of business and identifying variance.  Need Assignment Examples?Talk to our Experts!

Illustrating potential impact of legal and ethical considerations on travel businesses-

Exploring specific law which organizations in tourism industry had to fit-

The legal framework and regulatory have been developed in the whole United Kingdom within travel industry. It is useful for business and support them in conducting activity in the best possible way. The whole industry had responsibility of several stakeholders that are supplier, government, consumer and contractor etc., and thus for managing interest of stakeholder regulatory framework plays an essential role and need to be followed. The laws and regulation in travel & tourism sector are must for rendering an appropriate service to consumer (Yuan, Tseng and Ho, 2019). Some main legislation are described below-

Tourism Act 1969-

The major aim and objective of the act should for promoting existent development for the touristry in some area that are Scotland, Wales and England. It is very essential act as it provide appropriate support to the business which can be hotel, restaurant etc., in finance form. This act is helpful in coordinating all activity among wide range of the business which are running across Wales or England.

Transport Act 1980 and 1985-

This act could be applied to the public service vehicle which are performing in tourism industry. It play an important role for regulating or controlling private transport sources that are buses, cabs.

Package Travel and Tour Regulation, 1992-

This regulation is applied to the various tours operator which are conducting in the markets of the Wales and England. This highlight main duty and responsibility of tour operator while providing services to the consumer or traveller (Wiltshier, Griffiths and Clarke, 2019). It is initiated in England Wales in consumer protection perspective that, travellers should get appropriate package for amount which traveller are paying.

Surface Law-

This law had been governed and regulated through œThe International Carriage of Passenger by Road Act 1979. The main motive behind these are for safeguarding rights of the passenger on board for appropriate way that traveller's expectation could be met up. Surface law can be utilized for transaction with main claim of travellers which could be related to mental disorder and physical injury or problem related to luggage. The main aim of this law is to regulate and manage transportation of various passenger, good and luggage in adequate way (Tourism, 2017). Law assist in safeguarded interests of traveller that are unfit within transport.

However, this is major legal system which are existing in Wales and England. Tourism business had to operate their business activity smoothly regulated & formulated under laws and regulations. 

Utilizing particular example, illustrating organization, employment and the contract law had a possible impact on the decision-making of business in tourism industry-

Company law is body of law governing right, relation and conduct of the individual organization, business and company. This describes law related to matter that derive from corporation life-cycle. Thus, it encompasses funding, formation, governance and death of company. So any decision-making has been done in airline industry is to be done on the basis of company law and its implications. For example, the company had unlimited liability for its shareholder. Then the company's shareholder control organization by board of director, thus companies control and daily operation could be divided to full-time executive (Scharl, Lalicic and Önder, 2017). So decision-making in airline industry will fully depend on the decision-making of its shareholders.

Employment law is wide term and cover all aspect of the employment. It can cover everything from contract, through law which safeguarding employees against unfair dismissal and discrimination. It is helpful in regulating the relationship among company and their workers. Discrimination could be combat through this law, and could efficiently promoting equality at the workplace. Complying with law airline company had to ensure dismissal, hiring process at the work and this will affect the decision-making in company significantly. There must be a fair law for every individual. Under the Fair Labour Standard Act minimum hourly wage and the child labour law for certain industry and the minimum wage is $7.25.

Contract law could be defined as legal relationship among two or more party for good and service in exchange for some consideration which is enforced by law. Each airline industry had to bring a contract with customer and setting payment and service detail (Queckenstedt and et.al., 2017). Every travel contract had several terms and conditions along with that, that can be destination, departure, arrival, staying cost and duration. When the airline company fails to render this to their consumer this can be the failure of contract and this can directly effects company's decision-making. This law is safe and easy for traveller in travel industry. Relationship of the trust or belief can be build with the help of this law of the contract.

Justifying how budget can be managed or maintaining financial & statistical record-

Researching various type of the report mechanism or financial statement for company across tourism and travel industry-

Different type of the report mechanism and financial statement for company within tourism and travel sector. This could be described below-

Financial Statement:

Cash Flow Statement-

This statement state source and amount of the cash which is coming into company, the use of cash and amount leaving organization. This statement is detailed and easy to review. It is important because organization need to have an enough cash on their hand for paying its expense and for purchasing assets. Cash Flow statement could tell that whether a company is generating cash or not. It shows net decrease and increase in cash for period. It reorders and utilize information from organization's income statement and balance sheet (Jenkins, 2019). The travel and tourism industry can easily state how much of amount they are earning and what is spent by them. Each and every part can be reviewed by three activities such as operating, investing and financing activity.

Balance Sheet-

Balance sheet is overall review of company in which basic accounting equation has been shown. Left side of the balance sheet state companies gross assets and right side shows liability and shareholder's equity. The balance sheet of travel and tourism industry states snapshot of their assets, liability and the shareholder's equity at reporting period end. It does not show any cash inflow and outflow but it states the overall financial information of company and further state that whether company is in profit or loss.

Income Statement-

Income statement shows that how much revenue organization has been generated over a period. The income statement of travel and tourism company shows expense and cost that are associated with earning that particular revenue. Bottom line of this statement show organization's net losses or earnings. The earning per share of these companies could be analyzed. The calculation had told that how much of the money shareholder will receive if further organization decides to distribute all of their net earning for period (Jarratt and et.al., 2019). This is essential for tourism and travel company to have an income statement so that they can analyze properly that what area of business is contributing greatly, making it profitable and at what part it has been lacking behind.

From the above statement it can be stated the British Airways is performing well and maintaining their profit and losses significantly. The company had it financial management and having their working as per the funds which are available to them. They are not having deficit of funds they had enhanced their performance as compare to the last years financial statement. It can be stated that British Airways financial position is well, and they are doing extraordinary as compare to other rivals. Iberia is also working good in the market and both are having an intense competition among each other but as compare to British Airways Iberia is having good financial performance across the statement. Order assignment help from our experts! 

Report mechanism:

It includes two type of reporting that can be operational and business intelligence reporting. The operating report render information to management on organization's present operational efficiencies. The effective operational report enable management for analyzing projected & financial outcome and taking further immediate actions for seizing opportunity or cut losses in travel and tourism industry and performance outcome on regular basis. Operational reporting system travel ERP includes- real time informations, flexible ease of the use and granular reporting. The business intelligence reporting gives much broad information's perspective than operational report by combining data's from several sources. For travel industry, standardized data have the first choice which is part of the ERP system (Guan and Choy, 2016). Big Data and the Analytics can turns BI reporting into more effective technique for travel organization. The BI reporting must provides metrics & measurement, management dashboard and intuitive transparency. Thus, with the help of reporting mechanism the standardized data and aggregate information can be further utilized for curing the ERP system of travel.

Explaining significance and value of the budget for dominating performance of business and distinguishing variance-

Budget is broad financial plan for gaining operational and financial goal of company. It is the map of organization's strategic plan. For creating a budget company develop its objective for acquisition and utilize its resource. There are many benefits by planning a budget. It develops a coordination among department and activity while aligning this to gain huge profit and revenue further. It renders assignment of the decision-making responsibility and enhancing responsibility of management. If the good budget plan is developed than all the decision makers should work for similar goal and objective. The performance evaluation could be improved by rendering common base for the discussion that how effectively manager can meet goals and rendering the previous budget. The ensures that all business areas could become more efficient, that can render great efficiency among business overall (Crouch, Huybers and Oppewal, 2016). Business procedure of tourism and travel sector could be overall developed with an effective budget. If a company have appropriate budget then they can easily manage and control their operational activities effectively. With the help of effective budgeting and controlling company could enhance their performance significantly. Each and every dependent of organization needs an appropriate budget so that they can render their best. The necessary resources could be allocated in such a way that it can be helpful for company to gain huge competitive advantage. Effective budgeting improves the decision-making in company. With the help of budgeting variance can be sort out and then further effective budgeting and can be done to overcome that difference in such a way that it can be helpful for travel and tourism companies to sustain in market for long term and gains huge profit fin future. This could be helpful for company to enhance their performance significantly (Baumgartner and Bansal, 2019). The morale of employees can also be enhanced by communicating with employees the financial goal and budgeting of company and employee with positive attitude are always fruitful for company's growth and development. Thus, the budget plays an essential role in managing and controlling the performance of travel and tourism company, and they can effectively further allocate resources as per the budget. The effective management of budget helps company to set their goal and objective in such a way that huge revenue can be generated.

CONCLUSION

From the preceding study it could be stated that the travel and tourism sector can gain huge success with the help of business toolkit. The legislation and law levied by these company helps them to sustain with every companies situation effectively and could have smooth flow of business. Company, employment and contract law is helpful for company in their business decision-making and it can be significantly affected. The various financial statement and management reporting lets company to analyze whether they are gaining profit or not. Travel and tourism company with effective budget planning and managing could easily enhance their performance and gain huge profit and revenue.

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