Finance and Funding in Travel and Tourism Sector

FINANCE AND FUNDING IN TRAVEL
AND TOURISM SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Need of cost and volume in financial management in travel and tourism sector..................1
1.2 Pricing method analysis in TTM sector................................................................................2
1.3 Analyse factors influencing profit for travel and tourism businesses...................................3
TASK 3............................................................................................................................................4
3.1 Interpretation of financial accounts.......................................................................................4
TASK 4............................................................................................................................................6
Attached in poster.......................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Finance and funding are the two aspects which are required for the identification of the
cost. It allows a company to keep a track of the costs incurred in the business. A venture requires
a financial planner for the effective business decisions. As a result, the management will be able
to record the financial information and data for the effectual management of the financial
operations. The report is prepared with a motive to identify the necessity of the cost and volume
in the travel and tourism sector. However, the stated document supported the study of Merlin
Entertainment Plc which deals in different segments like attractions, parks and themes. This
organization aim at attaining its goals by offering versed services to the customers. The cited
firm has focuses on business expansions and investments with a motive to attain customer
satisfaction. As a result, this document will provide an assistance to the management to adapt the
appropriate pricing method (Amekudzi, 2015).
TASK 1
1.1 Need of cost and volume in financial management in travel and tourism sector
Cost is an amount which is incurred against the purchased product. In order to produce
the demanded goods or products, there are different steps to be cleared. For an instance,
production requires raw material for which the amount id paid. In addition to this, wages and
salaries are paid to the workers in against of their services to the organization. Moreover, cost
can have huge impact on the selling purpose of a company. The present study is based on the
case study of Merlin Entertainment Plc which offers travel and tourism services to the customers.
The organization renders hotel booking in behalf of the customers and also make arrangements
for them to make their tour comfortable (Cheng and Warfield, 2005) However, all these
arrangements incur cost which is being paid by the company. Here, the management needs to
evaluate its true position by considering the cost and volume. In addition to this, the cost raise
may be direct cost or indirect cost. This can be effectually understood with the help of cost,
volume and profit(CVP) analysis. Here, the stated organization will be able to identify the sales
and cost relationship. There are certain facets of this analysis which is explained beneath
(Bromwich and Bhimani, 2005).
 In order to evaluate the profitability of a venture, this analysis can remain fruitful. It
allows the management to identify the cost incurred with reference to operations and
production.
1