Finance and Funding in the Travel and Tourism Sector

FINANCE AND FUNDING IN THE TRAVEL AND TOURISM SECTOR
Management accounting is the essential part of organizations as it helps the firm in
recording and managing daily transactions of business. It is considered as effective
because it assists in eliminating risk of increasing cost which can impact budget
planning. The poster will outline types of accounting information system and its
used by Dalata Hotel Group plc, the largest Hotel operator of Ireland.
Types of management accounting information
 Financial Statements: Appropriate record of financial by Hotel group is to determine financial position and
stability of organization and its functions. Further, it is used by hotelier to keep a regular check on its assets and
liabilities. The income statement in financial statement assist in analyzing profits and losses business that
determines ability of enterprise top maintain consistency of services. On the other hand, cash flow statement is
used by Dalata to denote financing, operating and financial activities. Thus, the maintenance of financial statement
is the concept which helps in securing cost effectiveness of business operations.
 Budget: The firm plans budget to meet the future requirement and it is evaluated by firm to make optimum
utilization of financial resources and to increase effectiveness in services. Also, it helps the hoteliers in
establishing financial requirement to travel company in the future.
 Financial projections: Projection are done by Dalata to evaluate future expenses which are unexpected and are
related to revenue and cost functions. However, it is necessary for the hotelier to make and check financial
projection in order to avoid the chance of misshapen in financial resources.
 Investment decision: It is related to capital resources for which it is essential for the organization to keep a check in order to maintain record because it helps
in managing effective and high return. Investment decision are the critical part of business because it is related to both risk and benefits. Therefore, in
accordance, investment decision the firm plans it growth strategy in order to maximize services.
 Management information system: This system helps the firm in connecting and maintaining record of relevant business information data. MIS, is the tool
which is used by Hotelier to store and secure data. Further, it considered as effective because it helps in minimizing errors.
Different types of management accounting information that could be used as decision making
tools for Dalata Hotel Group plc
Management accounting information is one of the most appropriate tools for Dalata Hotel
Group plc organisation in order to managing their various types of financial issues in
industry (Smith, 2012). Apart from it, there are numbers of financial issues are being faced
by the hotel in industry and they have to address them by utilising several types of
management accounting information techniques at workplace. Management accounting
comes in the for of financial ratios, budget forecasting, variance analysis and cost
accounting management.
Financial statements: Financial statements is also one of the best approach for Dalata
Hotel Group plc organisation, its accounting professionals require to formation of proper
financial statements of day to day operation. So it assists its professionals to reach to
identification of financial gains in industry on a specific financial years of the hotel. It
helps the hotel professionals to determine that inflows and outflows of the company in
given time period. It also assists them to examination about differences between them.
REFERENCES
Vellas, F., 2011, October. The indirect impact of tourism: an economic analysis. In Third Meeting of T20 Tourism Ministers.
Ritchie, J. R. and Crouch, G. I., 2010. A model of destination competitiveness/sustainability: Brazilian perspectives. Revista de
Administração Pública. 44. 5. pp. 1049-1066.
Smith, K., 2012. The problematization of medical tourism: a critique of neoliberalism. Developing world bioethics. 12. 1. pp. 1-8.
Variance analysis:Variance analysis is also another important
approach for Dalata Hotel Group plc organisation in order to
knowing about differences between their standard values to
their forecasting values relating to gaining profit in given time
period. In addition to this, the business accounting
professionals need to make assessment of variances to
recognise their proportions of profitability (Chaisawat, 2012).
It assists them to making decision regarding the company.
Raising capital: Raising capital is one of the best
approach for decision making process in Dalata Hotel Group
plc hotel. It helps them to raising their various business criteria
such as raising in capital, so that business functionality also
expand in its business. The business manager can make
decision to raising capital of the business in order to gaining
proper development in business.