Finance and Funding in the Travel and Tourism Sector

1
UNIT 2 -
Finance and
Funding in
the Travel
and Tourism
Sector

Table of Contents
INTRODUCTION.....................................................................................................................................2
TASK 1 – WRITTEN REPORT...................................................................................................................3
1.1 IMPORTANCE OF COSTS AND VOLUME IN FINANCIAL MANAGEMENT OF TRAVEL AND
TOURISM BUSINESSES USING CARNIVAL CORPORATION & PLC AS A CASE STUDY...........................3
1.2 ANALYSE PRICING METHODS USED IN THE TRAVEL AND TOURISM SECTOR AND USING
RELEVANT EXAMPLES FROM DIFFERENT CRUISE BRANDS OF CARNIVAL CORPORATION & PLC.......6
1.3 ANALYSE FACTORS INFLUENCING PROFIT FOR TRAVEL AND TOURISM BUSINESSES USING
CARNIVAL CORPORATION & PLC CRUISE BRANDS AS A CASE STUDY................................................8
TASK 3 - WRITTEN REPORT ON THE FINANCIAL PERFORMANCE OF DALATA HOTEL GROUP PLC.......10
3.1 INTERPRETATION OF FINANCIAL ACCOUNTS OF DALATA HOTEL GROUP PLC FOR THE YEAR
ENDED 31ST DECEMBER 2016...........................................................................................................10
TASK 4 – LEAFLETS...............................................................................................................................14
4.1 ANALYSE SOURCES AND DISTRIBUTION OF FUNDING FOR THE DEVELOPMENT OF CAPITAL
PROJECTS ASSOCIATED WITH TOURISM..........................................................................................14
CONCLUSION.........................................................................................................................................0
REFERENCES..........................................................................................................................................1

INTRODUCTION
Travel and tourism industry is growing with a considerable pace contributing to the nation’s
economy. The finance and funding in travel and tourism is said to be very critical for their
growth and sustainability (Tribe, 2015). In this report the factors contributing the financial
performance of the Travel business is been analysed in context with the Carnival
Corporation & Plc analysing the importance of cost and volume with other related cost and
factors. In the next part of the report an analysis has been made in context with the Dalata
Hotel Group Plc for evaluating the financial performance of the business by comparing the
data of the two years. At last an understanding about the funding and capital projects are
discussed in terms of development and improvement of tourism sector.

TASK 1 – WRITTEN REPORT
Travel and tourism business also requires managing their finances and working on their
financial management. For this, the different terminologies and an assessment of different
financial terms have to be done by the companies (Heizer, 2016). As per the case of Carnival
Corporation & plc, a report has been made for understanding the important financial terms
such as cost, volume and different pricing methods and factors influencing the profit margin
of the company (Carnival Corporation & PLC, 2018). This will be helping the company in
analysing and taking effective management and financial decision making.
1.1 IMPORTANCE OF COSTS AND VOLUME IN FINANCIAL MANAGEMENT OF
TRAVEL AND TOURISM BUSINESSES USING CARNIVAL CORPORATION & PLC
AS A CASE STUDY.
COST is termed as the number of expenses or expenditure incurred by the company say for
acquiring the resources and material for producing the required output and selling it
respectively. In monetary terms the cost is assessed as per the charges against efforts,
material, time and utilities consumed, risk incurred, resources and opportunity forgone.
Cost is termed as an important element in the financial management of a business as it
affects the pricing of product and services with various other costs as well. There are
different types of cost depending on the type of resources and services (Eldenburg, et al.
2016). This classification of the cost is necessary for taking the three important business
decision i.e. product costing, management control and decision making.