Finance & Funding in Travel and Tourism - Assignment
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Added on 2020-11-12
Finance & Funding in Travel and Tourism - Assignment
Added on 2020-11-12
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FINANCE ANDFUNDING IN THETRAVEL ANDTOURISM SECTOR
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1 Significance of volume and cost in financial management...................................................31.2 Methods of pricing related to travel and tourism sector.......................................................41.3 Identifying factors which influences travel and tourism sector............................................5TASK 2............................................................................................................................................72.1 Different types of management accounting information with respect to Dalata HotelGroup plc.....................................................................................................................................72.2 Presenting applicability of management accounting information with reference to decisionmaking tool of Daltan Hotel group plc.......................................................................................8TASK 3..........................................................................................................................................103.1 Justifying financial statements of Dalata Hotel Group Plc of past two years.....................10TASK 4..........................................................................................................................................134.2 Justification of sources of funds for capital projects...........................................................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
INTRODUCTIONFinance and funding is essential for every sector especially for travel and tourismindustry. It is contributing huge part in economy as it has better opportunity for growth as well.The present report is giving brief discussion about Carnival Corporation Plc which is one of thelargest leisure travel company as it is planning a trip accordingly and it is creating ability for costvolume and profit analysis which has been performed with appropriate strategy. There ispresentation of specific pricing methods which are used in travel and tourism sector and it iselaborated properly. There is presence of different applications of information of managementaccounting which is specified in this business. Further it is also discussing about differentsources and distribution of funding for developing public and non public tourism.TASK 11.1 Significance of volume and cost in financial managementThe amount which is given or paid for obtaining or buying anything in context ofbusiness as it is referred as monetary valuation of time, utilities, material, efforts and resourceswhich are consumed is termed as cost. The amount of expenses which is directly denotingmonetary aspects and its finance can be measured related to business in known as volume. Theanalysis of cost volume profit is directly depicting planning process which management is usingfor predicting volume of future of any cost which has been incurred, and margin which is earned
and sales performance (Finkler and et. al., 2016). There has been presentation of accurateanalysis on alterations in sales and cost which id directly giving effect on margin in context offuture period. The world's largest leisure travel company is Carnival Corporation plc whichconsists of portfolio of 10 global cruise line brands. It is also owing tour organization which iscomplementing in cruise operations.Volume and cost, both are necessary for business of travel and tourism. In the context ofcost, it also gives emphasis on reduction of cost, decision making and it also improvesmanagement performance and helps in designing financial structure in very effective manner.Cost is considered as very important factor as it reduces cost of activities in context of businessand it provides margin for business. It can be altered as per business requirement. According tocost, whole financial account is managed. To earn the best return on investment decision makingprocess is used for capital budgeting. The travel and tourism activities which are linked withbusiness manages and designs financial structure related to different cost. There is presence ofdifferent projects which helps in increasing performance of financial management and for bettercomparison of financial stability of business related to travel and tourism.There is presence of different types of volume related to business. Analysis of volume ofbusiness is considered as necessity for travel and tourism business. If there is presence ofeconomies of scale then it will secure some amount of money and it will be increasing the levelof production. There is requirement for justifying break even analysis along with its processwhere recovery of initial cost which is used as capital for business. In business such as travel andtourism, break even point is very essential concept for identifying cost. If economies of scale isnot performed in effective manner then it is replicated by diseconomies of scale/ Volumeanalysis is mandatory for tourism business for getting information about operations related tobusiness.1.2 Methods of pricing related to travel and tourism sectorIn the present era, travel and tourism industry is getting huge growth. There are variouspeople who are visiting different places, travelling in this world and bookings has been done viainternet. For every country, this specific industry is very important as it helps in inflow of moneyand for developing nations. For making business decision in very effective manner so that it canearn good profits and move towards expansion of business in the future. For adopting pricingmethods there is need of marketing principles. Price of tourism business is set according to
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