Finance and Funding in the Travel and Tourism Sector

This presentation explores the various types of management accounting information used by Merlin Entertainment Plc and how it supports decision making. Topics include budgeting, variance analysis, MIS, and financial statements.

Finance and Funding in the Travel and
Tourism Sector

2.1 Different types of management accounting information
Introduction:
• Presentation is based on the Merlin Entertainment Plc.
• Various management accounting information will be discussed in this
presentation.
• Assessment of use of information for decision making will be done in this
study.

Management accounting information
• Accounting information are the essential aspect, with the help of this,
Merlin Entertainment Plc can enhance its business performance.
• It supports cited firm in forecasting the sales volume and preparing budget
so that desire profit can be earned by the entity.

Types of Management accounting information
There are several types of information which is used by the finance manager
of Merlin Entertainment Plc:
 Budget
 Variance analysis
 MIS
 Financial statements

Variance analyses
• Some times projected budget gets differed from the actual budget.
• With the help of this finance managers of Merlin Entertainment Plc can
identify the loop fall and can make strategies to reduce the gap between
them.

Contd...

MIS
• It is the computerized system hat supports the entities in keeping record
safely.
• With the help of MIS company can get relevant information about previous
history and can make strategies for improving performance of the
organization.

Budget
• It is an essential tool that supports organization like Merlin Entertainment
Plc in forecasting the future earning.
• With the help of this organization can make effective control over their
expenditures and can enhance profit of the company.

Financial statements
• Income statement, balance sheet, cash flow statement etc. are necessary
accounts which are important for the firms to prepare.
• Finance manager of the Merlin Entertainment Plc can compare ratios with
previous performance and can identify he problem. By this way future
profit of the company can get improved.

2.2 Use of management accounting information as a decisions
making tool
 Management accounting information are the important details that are
used by the entities for making sound decisions.
 That supports in forecasting the future of the business for instance future
sales and toal future expenditures can be assumed with the help of these
information.

Contd...
Use of these details are as below:
 Forecasting
 Investment decisions
 Identify current issues
 Preparing budget and set goal
 New product development
 Raising capital

Contd...
• Management accounting information are the essential information that can
help the Merlin Entertainment Plc in making sound judgment.
• With the help of these details finance manager of cited firm can forecast
the future activities and can make proper strategies that can help in
increasing performance of the organization.
• Forecasting supports in knowing the future uncertainties that can harm the
performance of the company, so that manager can prepare positive
strategies to minimize the uncertain events in the firm.

Contd...
• Accounting information like budget and MIS support to give necessary
details about the expenditures of the company.
• By this way firms like Merlin Entertainment Plc will be able to identify
the root cause of the problem. That would guide the manager in making
proper solutions for these issues. With the use of these information fiance
manager of the Merlin Entertainment Plc can set its objective which can be
achieved in the specific time duration.
• That would help in increasing overall revenues of the firm to great extent.
• Apart from all these uses, finance manager of the Merlin Entertainment Plc
can design quality travel packages which can meet with the needs of
customers.

Conclusion
• These information will help in designing the products as per their needs so
that they can get satisfied with the brand and be attached with the
organization for longer period.

References
Bao, J., 2014. Going with the Flow: Chinese Travel Journalism in Transition.Travel Journalism. Exploring Production, Impact and
Culture. pp.134-151.
Bhat, M. G., Bhatta, R. and Shumais, M., 2014. Sustainable funding policies for environmental protection: the case of Maldivian
atolls. Environmental Economics and Policy Studies. 16(1). pp.45-67.
Briones, Z. B. H., Yusay, R. M. S. and Valdez, S., 2017. Enhancing Community Based Tourism Programs of Gawad Kalinga
Enchanted Farm Towards Sustainable Tourism Development. Journal of Economic Development, Management, IT, Finance,
and Marketing. 9(1). pp.51.
Cárdenas-García, P. J., Sánchez-Rivero, M. and Pulido-Fernández, J. I., 2015. Does tourism growth influence economic
development?. Journal of Travel Research. 54(2). pp.206-221.
Costa, C. and et.al., 2016. Through the gender looking-glass: Brazilian tourism entrepreneurs. International Journal of Gender and
Entrepreneurship. 8(3). pp.282-306.
Divisekera, S., 2016. Interdependencies of demand for international air transportation and international tourism. Tourism
Economics. 22(6). pp.1191-1206.
Gardiner, S., King, B. and Wilkins, H., 2013. The travel behaviours of international students: Nationality-based constraints and
opportunities.Journal of Vacation Marketing. 19(4). pp.287-299.
Bao, J., 2014. Going with the Flow: Chinese Travel Journalism in Transition.Travel Journalism. Exploring Production, Impact and
Culture. pp.134-151.
Bhat, M. G., Bhatta, R. and Shumais, M., 2014. Sustainable funding policies for environmental protection: the case of Maldivian
atolls. Environmental Economics and Policy Studies. 16(1). pp.45-67.
Briones, Z. B. H., Yusay, R. M. S. and Valdez, S., 2017. Enhancing Community Based Tourism Programs of Gawad Kalinga
Enchanted Farm Towards Sustainable Tourism Development. Journal of Economic Development, Management, IT, Finance,
and Marketing. 9(1). pp.51.
Cárdenas-García, P. J., Sánchez-Rivero, M. and Pulido-Fernández, J. I., 2015. Does tourism growth influence economic
development?. Journal of Travel Research. 54(2). pp.206-221.
Costa, C. and et.al., 2016. Through the gender looking-glass: Brazilian tourism entrepreneurs. International Journal of Gender and
Entrepreneurship. 8(3). pp.282-306.
Divisekera, S., 2016. Interdependencies of demand for international air transportation and international tourism. Tourism
Economics. 22(6). pp.1191-1206.
Gardiner, S., King, B. and Wilkins, H., 2013. The travel behaviours of international students: Nationality-based constraints and
opportunities.Journal of Vacation Marketing. 19(4). pp.287-299.

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