Report on Finance and Funding in Travel Sector
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Added on 2020-06-05
Report on Finance and Funding in Travel Sector
Added on 2020-06-05
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Finance and Funding
TABLE OF CONTENTSTASK 1............................................................................................................................................3P1.1 Discuss significance of cost and volume in financial management....................................3P1.2 Discuss various pricing methods in travel and tourism sector............................................4P1.3 Outlining factors influencing profits...................................................................................6TASK 2............................................................................................................................................8P2.1 Various types of management accounting information......................................................8P2.2 Use of management accounting information in tourism sector..........................................8TASK 3..........................................................................................................................................12P3.1 Interpret financial statements of Dalata Group plc...........................................................12TASK 4..........................................................................................................................................14P4.1 Sources and distribution of funding for capital projects ..................................................14CONCLUSION..............................................................................................................................16REFERENCES .............................................................................................................................17
INTRODUCTIONFinance is the blood for any organisation and without it, firm cannot function properly.The same applies to travel and tourism sector as well. The enclosed report deals with variouscompanies which are engaged in travel sector and which all needs funding for carrying out theirday-to-day activities with much ease. Carnival plc is travel company which is the market leaderin UK and another company is Dalata Hotel Group Plc which is engaged in hospitality sector.The importance of funding is discussed in the report. CVP analysis is carried out for organisationso that it may be able to control cost and earn desired level of profit by maintaining volume ofproduction in effectual way. Moreover, pricing methods are discussed along with factors whichinfluence profits of travel sector. In addition to this, financial ratios are being calculated forstudying financial position of sector in effective way. Apart from this, importance ofmanagement accounting information is also discussed and how company utilises the same.Overall importance of funding is discussed which is important to travel and tourism sector forachieving goals on time and at the same time, satisfying customers with much ease and outreachrivals by making well-structured strategies in the best possible way and yielding good quantumof profits. TASK 1P1.1 Discuss significance of cost and volume in financial managementCost Volume Profit analysis (CVP) is an important analysis which is used in tourismsector and other sectors as well. CVP is used by Carnival plc to figure out how changes occurredin cost affects overall expenses which are required for maintaining operating expenses and netprofit in the best possible way. As, Carnival plc is engaged in providing ten global cruise brandsin various countries and as such, it is required that it carry out CVP analysis in the best way sothat profit and cost can be maintained with much ease (What Is CVP, and How Is It Important toManagerial Accounting?, 2018). Costs, volume and profit are three pillars in the financialmanagement which is needed to carry out effectively by the company so that it may flourish inthe market with much ease. Importance of CVP analysis are as follows-1. It helps Carnival plc to reduce the cost of tour packages of various cruises in effective manneras it comes to know whether consumers are ready to buy the same or not. Thus, it provides themcomplete clarity and transparency in effectual way so that costs and profit can be maintained inquite effective way with much ease.4
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