Types of Management Accounting Information in Travel and Tourism Businesses

This document explains the different types of management accounting information that can be used in travel and tourism businesses. It discusses the importance of financial reports, pro forma cash flow, and sales reports in gaining economic stability and growth. It also assesses the use of management accounting information as a decision-making tool for Dalata Hotel Group plc.

Setting Objectives
Research of Customers
Evaluating Competiton
Setting Budget
Considering Communication Channels
Developing Right Message
Project the right image
Legal Formalities
Monitor and Measuring
Evaluation of Campaign and Strategy
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Finance and Funding in the Travel and Tourism Sector
P2.1 Explain different types of management accounting information that could be used in travel and
tourism businesses.
The travel and tourism firm involving the hospitality firms like Dalata Group will look after the better
management of different accounting information that will help the firm to gain a better economic stability and
growth of firm. The assessment of this information source will help the cited firm to have a good control over the
operations and help in formation of strategic plan. Some major documents that are been taken in thought
process by the firm are as follows:
 Financial reports: the assessment of financial reports will help the Dalata group will help the firm to gain
a good idea about the operations that help in better handling of wide range of operations that will
support the effective rise in business operation of company. It gives a clear detail of profit and loss and
also the details of various sources of income and expense of a company. It is a summary about
company's gains and net worth of travel and tourism firm (Gurtner, 2016).
2.2 Assess the use of management accounting information as a
decision-making tool for Dalata Hotel Group plc
The management accounting information helps in better
management of wide range of operations that are been
followed by a firm in a better way. The assessment of business
operation will help in suitable rise in its decision making
capability of firm. The better assessment of information and
details associated with financial resources and assets of Dalata
group will help the management of travel and tourism
enterprise to gain access to its economic resources. Some
financial resources that are been taken in consideration by the
firm are:
Pro Forma cash flow: It is the gain of financial
resources that are been gained in a short or medium
accounting period. It is based on monthly or half
yearly basis that helps in better rise in financial
stability of firm. It will help Dalata Group to gain an
idea about the financial risks and thereat factors that
can impact the profit margin of firms. Other than this,
it helps in having a good control over the shortfalls
and surplus and ensure a better utilisation of
opportunities of growth and development by the
firm.
Sales report: it helps in identification of company's
revenue and help in better rise in functional
capability of firm. It is used to identify the profit
gained by increase in selling of the product or
services offered by Dalata Group. This will help the
firm to identify high and low income commodity
(Veal, 2017).
Budgeting: the budget of financial reserve that is owned by a firm will help the organisation to carry out the operations of the
company. The forecast model that is been developed by Dalata Group will help the firm to decide the strategies based on the
budgeting. The budget primarily consider the cash in hand and other evaluation of assets owned by travelling firm
Ratio analysis: this is the process and generation of a report that includes the assessment of finance of Dalata Group on regular
intervals. It helps in better management of company's liquidity and help it to promote a better revenue generation (Pierce, 2016).
It helps the management of tourism entity to decide and plan its collection periods in a better way.
Forecasting: It will help cited entity to predict the conditions and risk factors that can impact its growth and development in a
better way. It will also help the firm to predict the outcomes of its business operations support an effective trend analysis. It will
involve the assessment of revenues, sales and growth factors that impact monetary stability of organisation. This will help in
deciding future policies of firm.
REFERENCES
Armenski, T., Dwyer, L. and Pavluković, V., 2018. Destination competitiveness: public and private sector tourism management in Serbia. Journal of Travel
Research. 57(3). pp.384-398.
Castaño-Isaza, J. and et.al., 2015. Valuing beaches to develop payment for ecosystem services schemes in Colombia’s Seaflower marine protected area. Ecosystem
Services. 11. pp.22-31.
Gurtner, Y., 2016. Returning to paradise: Investigating issues of tourism crisis and disaster recovery on the island of Bali. Journal of Hospitality and Tourism
Management. 28. pp.11-19.
Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector. Current issues in Tourism. 18(12). pp.1192-1217.