Finance and Funding in Travel and Tourism Sector

FINANCE AND FUNDING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Importance of cost and volume in finance management of travel and tourism....................1
1.2 Evaluate pricing method used in travel and tourism sector..................................................2
1.3 Factors effect profit for Merlin Entertainments....................................................................3
TASK 2............................................................................................................................................5
2.1 Different management accounting information for Merlin Entertainments.........................5
2.2 Management accounting information as decision making tool.............................................5
TASK 3............................................................................................................................................5
3.1 Financial accounts' interpretation for TRG Plc.....................................................................5
TASK 4............................................................................................................................................8
4.1 Sources and distribution of funding for development of capital projects.............................8
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................11

INDEX OF TABLES
Table 1: Ratio analysis for TRG PLc...............................................................................................6

INTRODUCTION
Finance refers as provision of money in which study of investment and money
transaction is created. However, funding is a process for providing fund from government and
organisation for entity's business operations. The present report is based on understanding
finance and funding concept for Merlin Entertainments plc and The Restaurant Group (TRG)
plc regarding further business operations as well improving their services. Merlin
Entertainments is wide spread tourism sector organisation of UK that provides travelling and
accommodation services to a million customers globally. While, TRG is of several restaurants
and pubs across UK provides food and accommodation facilities to various tourists. In this
regard, cost and volume management as well pricing methods used in tourism are to be
described. Including this, varieties of management accounting information and their
importance for decision making is to expressed through this assignment. However,
interpretation of financial accounts of TRG can be explained that affects further business
operations. Thus, students are able to understand significance of finance and funding in
tourism sector that remains linked with further operations through this report.
TASK 1
1.1 Importance of cost and volume in finance management of travel and tourism
Merlin entertainment plc focuses on giving memorable experiences to its travellers for
establishing its leadership, the company regularly measure and maintain its cost, volume and
profits (CVP). Further, the continuous check over CVP analysis, provides Merlin easy
monitoring and control over its cost related expenses in order to increase net turnover with
customer satisfaction (Bakand, Hayes and Dechsakulthorn, 2012). In addition to this, CVP
identifies changes in cost and volume which affect the operating income and profits of Merlin
entertainment Plc. Besides, it is important to maintain the record of financial transaction
within the firm to evaluate various aspects like performance of business which helps in
effective decision making. CVP analysis is important for Merlin entertainment as it helps the
company in calculating:
Direct Cost: Direct cost of the travel and tourism sector includes the cost which are
paid for purchasing direct expenses, labour and material.
Indirect cost: Indirect cost are also known as overheads which are indirectly related
with the business activities like cleaning cost, energy cost, property rents, administrative