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Finance and Funding in the Travel and Tourism Sector : Report

   

Added on  2020-06-06

16 Pages2844 Words34 Views
Finance and Fundingin the Travel andTourism Sector

Table of ContentsINTRODUCTION...........................................................................................................................1Task 1...............................................................................................................................................1P1.1: ...........................................................................................................................................1P1.2:............................................................................................................................................2P1.3 :...........................................................................................................................................3Task 2...............................................................................................................................................4Covered in Poster........................................................................................................................4Task3................................................................................................................................................4P 3.1.............................................................................................................................................4Task 4.............................................................................................................................................12Covered in Leaflet ....................................................................................................................12CONCLUSION..............................................................................................................................12REFERENCES .............................................................................................................................13

INTRODUCTIONFinance has a vital role in developing and establishing a businesses organization tooperate its routine activities, its business will grow to earn profitability and attain its goals andobjectives. People are seeking for pleasure while spending their holidays, so it needs high rate ofinvestment to catch the attention of people in order to please them with ambience and amenities,development of sight scenes, etc. This report is completely focused on finance and funding oftravel and tourism, funding structured to sanction the amount to establish a locations for touristpurpose, and sum of the cost and volume of the monitory policies refers to financial status ofbusiness, that of the past year(Buhalisand and Darcy, 2011). This is dependent on management accounting system and financial management to reachout its goals of benefit of travel and tourism sector. In this report, Carnival Corporation & plc is alargest leisure travel company in London, which is about to explain the significance of costs andvolume, pricing methods, and profit through finance management. Dalata Hotel Group plc isanother firm which is undertaking management accounting information to assist in decisionmaking on the bases of its accounts report. At the last of the report, it includes a funding face inwhich gathers pecuniary resource to develop it capital projects. Task 1P1.1: A cost is a sum of total expenditures that are spend in manufacturing of products andservices, to produce a goods and services for the end user by which they can be satisfied. Costneeded to be controlled to accomplish all the functions effectively in a business, different kind ofcosts are combined to know the overall expenditure in every operation. There are several typesof costs that includes direct costs which is directly related to the production. In case of indirectcosts are those which are not directly related with production but can be define as depreciationand administration expenses, fixed costs that never changes, variable costs varies with the levelof output, allocation comprises with the process of identifying, aggregating and assigning costsof objects, and apportionment cost(Choiand and Turk, 2011). Carnival Corporation & plc, offersservices to the clients, which are known as incurred cost that need to by the customer after theconsumption. There are so many techniques and tools which are used by the businesses to makedecision, that involves break-even analysis which is a calculation of at an axes where revenues1

and expanses are almost equal economies of scale and diseconomies of scale refers todisadvantages of cost that firms and government results due to increase in firm size or output.The firm has used several cost volume profit analysis with a purpose of taking decisions whichare related with the cost, volume and profit. The analysis is done to gain the understanding ofsales level, that generate the information about the desired profit. Cost volume analysis is aneffective tool that aid to analyse the actual cost and the capability of the firm to to provide lavishservices to the customers, and there are some other benefits of using cost volume benefitsincluding better controlling, decision-making, forecasting and price fixing(Evans, Stonehouseand Campbell, 2012). P1.2:As pricing is a important in every business so, travel and tourism industry is notuntouched with that, it is one of the most giant industries, which is growing rapidly and nevergone in break even point, this is one of the finest source of income for any individual who ispursuing in travel and tourism organization and for government of the country also, to generatemaximum revenue to support economy. It has been determine that there are various types ofpricing strategies considered in an organisation to set prices of the products and services whichare offering by them, Carnival Corporation & plc also considering various aspects of pricingmethods to decide the price of their offering comforts, they are offering some schemes likediscounts on some specific services as well as competition pricing. The firm needs to be take alook on all of these kinds of prices before select one, as company can offer discount price in offseason for example, this is cruise leisure travel firm, so it can increase the time of peak season togain the profit, because at that time the travellers will not bother about prices, and in off seasondiscount is best policy to sustain and maintain the operations. Cost plus is one of the effectiveobjectives to achieve future aims and goals through using different kind of costing by includingtotal earning of an organization based on actual cost of services (Gibson, Kaplanidou and Kang,2012). In market led pricing the prices are generated through market force, according to thecustomer demand, by providing the things for what customers are seeking for. CarnivalCorporation & plc, is using this price strategy to decide the price of assorted packages. In valueadding pricing the firm is adding extra services with already existing to allure the customerswhereas in comparative pricing method, prices are regulated according to the market analysisregarding the prices of rivals, this can lead to get the advantages in competitive scenario when2

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