Finance and Funding in the Travel and Tourism Sector
Module booklet for the Pearson BTEC HND in Travel and Tourism management, Unit 14 - Unit Tour Operations Management.
23 Pages5174 Words199 Views
Added on 2020-06-04
About This Document
Finance and Funding in the Travel and Tourism Sector INTRODUCTION 1 TASK 11 1.1 Significance of cost and volume in financial management of T&T business 1 1.2 Price techniques which are implemented in travel and tourism sector 2 1.3 Analysis of factors influencing profit for travel and tourism business 4 TASK 26 Covered in PPT6 TASK 313 3.1 Interpretation of financial statements and accounts of Dalata hotel group 13 TASK 415 4.1 Sources and allocation of funds for the development of capital projects 15 CONCLUSION 18
Finance and Funding in the Travel and Tourism Sector
Module booklet for the Pearson BTEC HND in Travel and Tourism management, Unit 14 - Unit Tour Operations Management.
Added on 2020-06-04
ShareRelated Documents
Finance and Funding in theTravel and Tourism Sector
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Significance of cost and volume in financial management of T&T business..................11.2 Pricing techniques which are implemented in travel and tourism sector.........................21.3 Analysis of factors influencing profit for travel and tourism business............................4TASK 2 ...........................................................................................................................................6Covered in PPT.......................................................................................................................6TASK 3..........................................................................................................................................133.1 Interpretation of financial statements and accounts of Dalata hotel group....................13TASK 4..........................................................................................................................................154.1 Sources and allocation of funds for the development of capital projects.......................15CONCLUSION..............................................................................................................................18REFERENCES..............................................................................................................................19
INTRODUCTIONFinance is a major concern of every business which need to understand by managers andother individual in an appropriate frame. Although, for every project, there is a need of fundwhich constitutes better and effective working as well as accomplishment of targets (Guttentag,2015). Finance and funding in travel and tourism is a major aspect of every business which needto understand by every association whom working under such consent. This project is based onCarnival Corporation Plc and Dalata Hotel Group plc which need some fund in order to improvetheir working and operations. In such aspect, management need to understand the importance ofcost, volume and profit for management decision making. Along with this, there is a need tounderstand the management accounting system as a decision making tool for both association sothat appropriate and effective funding lead to take place. Moreover business need to interpretfinancial accounts properly which facilitate suitable judgement as well in order to gainappropriate opportunities. TASK 11.1 Significance of cost and volume in financial management of T&T businessCarnival corporation Plc: It is biggest travel association which is operating theirbusiness in many locations (Tribe, 2015). For example: Europe, North America and so on. Alongwith, they are dealing with more than ten global cruise line brands. They cater financial help tothose individuals who wants to travel distinctive destination. Additionally, they use manymarketing activities so that they will be able to get attention of numerous persons. In modern era,sector of travel and tourist is very advantageous because now day many individuals want to visitother places with distinctive aims. Henceforth, there are certain facets associated with financeaccording to business of travel and tourism:Cost: It is that amount which will incur at the time of booking of package. This isforemost elements which has to be taken into under consideration by individual so that they willplan their tour in an appropriate and efficient way. Therefore, firm will provide suitable tripwhich comes under their budget. As a result, they will make their trip memorable andexperienced (Vanhove, 2017). Volume: This is related to service quantity as well as expenditures which will present infinancial terms, need to be considered under this. It is basically connected to overall quantity ofthose tickets which is purchased by people from Carnival association.1
Importance of costs: This is considered as main factor in the sector of travel and tourism.If cost of company is much high then, this will provide impact to success as well as growth of anorganisation either in a direct or indirect manner (Veal, 2017). Entire things need to managed inan appropriate manner; therefore, unnecessary mistakes will get decreased. Fundamental aim oftour firm is to enhance their profits. For above stated purpose, they need to formulate somestrategies as well as policies so that they will be able to sell maximum packages to customers atthe time of season. Cost reduction: This is considered as the foremost element for each kind of company. Byreducing or eliminating unwanted cost from business process company will maintaintheir revenues. This aids to improve image and market share of an enterprise atmarketplace (Castaño-Isaza and et. al., 2015).Decision making: It is must for an organisation to take best judgement for business as thiswill assist them to cater advantage for longer period of time. As a result, they willmaintain their position at marketplace for longer period of time. Increasing performance of managers: If extra cost is saved by firm then, they will easilysave fund, which will help them to enlarge business operations. Thus, they will providetheir services at many other countries effectively (Adiyia and et. al., 2015).Importance of volume:BEP analysis: This sort of process is utilized by company if their recent place atmarketplace is much effective as well as efficient. This is basically associated with entireexpenditures and in addition cost. It can occur operational balance; thus, Carnival firm istrying to make an appropriate plan so that they will cover extra cost.Economical of scale: If sales of items and services get enhanced then, this will cater costadvantages to company. Therefore, they will be easily overcome from variable cost perunit due to synergies and operational efficiencies (Sawyer, 2015).Diseconomies of scale: As indicated by this phase, there is a circumstance under whicheconomic of scale is not operating by firm in an effective manner. This will occurbecause of business size. 1.2 Pricing techniques which are implemented in travel and tourism sectorEach type of company needs to identify needs and wants of their customers so that theywill accomplish it within limited period of time. Therefore, there are many tour packages which2
developed by manager so that they will make experience of clients more effective (Hjalager,2015). As persons are much sensitive; therefore, the choose those items which is benefits forthem for maximum period of time. Along with, employer has to divide market to satisfy eachkind of users appropriately. Policy of price will altered as per circumstance and time.Organisation needs to provide effective packages to their customers so that they will be able tomake their journey more experienced or rememberable. Cost for some routes are fixed byCarnival firm which is providing by them to their customers (Airey and et. al., 2015). Thus, there are certain pricing methodologies which are mentioned as beneath:Cost based pricing: This is much easier manner to evaluate price in an appropriate way.This will be classified into some parts, which are stated as beneath:Full cost pricing:This is collaboration of fixed as well as variable cost.Direct cost pricing:It is related to cost of variable plus overall percentage of markup. Cost plus pricing:This is considered as an effective pricing which is using by Carnivalfirm so that they will easily improve their profits. Skimming pricing:According to this, manager of company charge higher value fromclients at beginning of tour. This is basically adopted for thoseindividuals who belong to high class. For instance: Internationalstay.Penetration pricing:As per this, company offers less price to clients as comparison torivals. Like: discounts.Demand based pricing: According to this price of package is much associated with thedemand of clients. This is considered as more real in nature (Lunt, Horsfall and Hanefeld, 2016). Competition oriented pricing: This is also called as market oriented pricing and itincludes some basic value which is charged by contenders from customers. This will compriseParity, premium and discounted pricing.Product line pricing: This is basically related to the provided package which is muchassociated with one another. Along with, planning cost of these trips are not much similar. Thiswill be high so that sufficient revenues will be gained by firm (Hingtgen and et. al., 2015). Forinstance:DestinationCost (in Pounds)3
Domestic location90National285International550Seasonal pricing: As indicated by this, price is charged by the Carnival organisation asper season, for example:Summer pricing: At this duration, there are maximum number of individuals who visit toother places with different aims. Thus, firm will alter prices of services which areproviding by them. Along with, they will enhance trip cost by giving some sort ofdiscount offers as it attracts many people towards them (Shahbaz and et. al., 2017).Winter pricing: According to this, many persons do not want to visit differentdestinations due to high temperature. Thus, association has to choose price accordingly.1.3 Analysis of factors influencing profit for travel and tourism businessRevenues of an organisation are basically associated with marketing activities as well astrends. With assistance of this, they will gain attention of numerous individuals towards them.Main income source of nation is tourist or traveller (Loh, 2015). They will get attracted towardsheritage and cultural places of country. It has been evaluated that activities and trends ofmarketing very much changed the sector of travel or tourism. Henceforth, there are certain components which will provide impact on the profits oftravel as well as tourism section:Currency rates: Sector of travel and tourism is linked economy of country with othernations. It has been seen that each nation is having their own currency. Along with, foreigntraveller's criteria is much high in industry of travel and tourism (Tourism information centre ofParis, 2018). This get evaluated that rate of currency is highly depend on various factors, such asrate of employment, fiscal deficit and GDP. In US, there is an enterprise named, Carnivalcorporation and plc which is cruise based association. Dollar is utilized over there so that peoplewill do their financial transactions. Currency rate will fluctuate according to time; therefore, it isnot easy for firm to set revenues priorly (Tolkach and King, 2015).Development: If production as well as profits of company get improved then, this willprovide success and growth to them. This assists to render positive outcomes to them which willhelp to be competent in marketplace. It has been evaluated that Carnival Cruise is collaboration4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
(Solved) Finance and Funding in Travel and Tourism Sectorlg...
|14
|4146
|75
Significance of Cost and Volume in Financial Management of T&T businesslg...
|25
|4363
|34
Finance and Funding in the Travel and Tourism Sectorlg...
|11
|2573
|309
Finance & Funding in Travel & Tourism Sector - Reportlg...
|25
|4471
|38
Financial Management of Carnival Corporation and Plc : Assignmentlg...
|9
|2149
|31
Finance and Funding in the Travel and Tourism Sectorlg...
|21
|6237
|64