Finance and Funding in the Travel and Tourism Sector

FINANCE AND FUNDING TRAVEL
AND TOURISM SECTOR
(TASK 2)

CONTENT
 Introduction
 Various types of management accounting information
 Use of management accounting information in decision making process
 Conclusion
 References

INTRODUCTION
 This report contains different management accounting information tools that are used in
travel and tourism sector so as to manage its operational activities and functions.
 It will also define to best use of tools of management accounting information.
 Dalata hotel group Plc is Ireland's leading tour operator by having a current portfolio of 38
four star hotels around 7700 rooms. The main objective of the firm is to deliver qualitative
and value added tourism facilities to tourism in order to achieve high profit margins.

Various types of management accounting information
Management accounting – In order to track, record and report financial information for
managerial review managers use management accounting. It does not follow any
national accounting standards.
Management accounting information – It is an essential aspects that aids in enhancing
the performance of a business entity. Several companies uses accounting information
in order to forecast the sales revenues and formulation of annual budgets.

CONTINUE...
Below describe the tools of management
accounting information: -
 Ratio analysis
 Budgetary control
 Fund Flow Analysis
 Variance analysis

Use of management accounting information in decision making
process
The core concept of management accounting information to support the different
operations of an organisation. It has several tools and techniques that aids supervisors
of travelling industry to crucial business decisions and grab best opportunities.
Management accounting information, provides data needed to determine whether a
business is at a loss or a profit, how much debtors owe, how much a business owes
others, and other financial information.

CONTINUE...
Utilisation of management accounting information: -
 Forecasting
 Investment decisions
 Trend analysis

CONCLUSION
 The role of management accounting is to collate data from various functional units
and take important decisions.
 The information can be used in forecasting and comparison performance of two
years.

REFERENCES
Papatheodorou, A., Rosselló, J. and Xiao, H., 2010. Global economic crisis and tourism:
Consequences and perspectives. Journal of Travel Research.49(1). pp.39-45.
Ritchie, J.B., Amaya Molinar, C.M. and Frechtling, D.C., 2010. Impacts of the world recession and
economic crisis on tourism: North America. Journal of Travel Research.49(1). pp.5-15.
Spenceley, A. ed., 2012. Responsible tourism: Critical issues for conservation and development.
Routledge.