Finance and Funding in Tourism and Travel Sector

Added on -2020-07-23

| 16 pages| 3526 words| 33 views

Trusted by 2+ million users,
1000+ happy students everyday

Showing pages 1 to 4 of 16 pages

Finance and Funding inthe Travel and TourismSector
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Importance of cost and volume in financial management:...............................................11.2 Pricing methods used in travel and tourism sector:..........................................................21.3 Analysis of various factors those are influence profitability of Merlin entertainment.....3TASK 2............................................................................................................................................52.1 and 2.1: Covered in PPT...................................................................................................5TASK 3............................................................................................................................................53.1: Financial analysis............................................................................................................5TASK 4..........................................................................................................................................114.1: Poster.............................................................................................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................13
INTRODUCTIONFinance is the main tool in the business for getting operated. Each company usingeffective management tools so that the price of the product can be lowered which would maketheir business operations effective and this also makes business sustainable and reliable. Traveland tourist industries renders completely diverse offers to customers concerning varied travellerdestinations. They integrates the traveller for rendering travel packages to their client as per theirpreferences. Each business owner needs to know the exact requirement of its firm so that thebusiness objectives can be met within a set deadline (Zadek, 2011). The firm needs to maketheir business operations effective and efficient by setting pre-set goals and objectives. Underthis project, importance of cost are analysed, diverse pricing strategies are used by the firm intravel and tourism sector, diverse factors affecting profits of tour and travel sector, variousmanagement information are used.TASK 11.1 Importance of cost and volume in financial management:In any firm, cost is the main tool to take decision in any firm. By ascertaining costs, firmis able to make various decisions so that the business can achieve sustainable development. Thisis the only thing on which competitors product price is determined. However, cost is separatedinto two parts which are direct and indirect costs. These are defined as under:Direct costs: These are the costs which directly affects the production of goods andservices. These are material and labour cost, and this is the most crucial cost which assistin making operational planning so that an adequate cost system at the time of takingdecisions in terms of handling cost system.Indirect cost: These are the costs which are not directly linked with the cost ofproduction. But, ultimately contribute for making product or services sustainable(Kwong, Jones-Evansand Thompson, 2012). With the help of this cost, company is ableto predicts the estimated costs and labour in rendering services which could help out thefirm to stop the least losses.Variable costs: This is the cost which vary in an extra unit cost of production. As,Marlin entertainment plc firmly accumulates on making particular and memorablevisitors experiences with its passion.1
Fixed cost: It is the cost that are constant and does not change with the change in theunit.Cost-volume profits: it is the crucial tool which provides reliable information formanagement for making plan and make an efficient decisions. This sector producesoutcomes for growing the business (Travel and Tourism Management, 2017). CVP is thekey essential assessment of linking among profits, selling price and total fixed costs. 1.2 Pricing methods used in travel and tourism sector:There are such a significant number of components those impact the estimatingtechniques which is utilized as a part of travel and tourism division, for example, unique areas,individuals, economy and so on.These segments are having various evaluating procedures oftourism business. Following are pricing strategies that are utilized as a part of taking choices ofevaluating in any visit and travel area: Rack rates: This is a rate which is called as "full rate". It is a cost, on which no rebatesare connected prior and this is normally a rate that is given to entire customers. It is imprinted onthe booklets also (Warner, 2013). These rate can likewise differ as per the day. For instance rackrates can be demonstrated more quick on closing of the week in relation with general days sinceindividuals go for visits various attractive tourist destination in different parts of the nation. Occasional evaluating: As it is demonstrate from innocence, it basically signifies astrategy for estimating in which benefits can be made more in those seasons which are on pickfor visit and ventures business and these benefits will remunerate the misfortunes happenedwhen there was no request and there were low deals. It changes as per the request of clients.While there is low request the costs will likewise go ease back to asked individuals. Cost in addition to technique for evaluating: This is a strategy in which the costacquired in any products and enterprises gave by organization and other work costs areincorporated and after that settled level of benefits are to be included us in that cost. After thatthe value that includes is resolved as perfect esteem. Cost drove valuing technique: Under this plan of techniques a settled % of theaggregate cost is included measure of cost touched base for item and administrations. At thatpoint the last cost is touched base at which deals are to be made. Market drove estimating: This cost is resolved in the wake of making a profoundresearch in showcase. This cost is relying on the request of item and administrations in advertise.2

Found this document preview useful?

You are reading a preview
Upload your documents to download
or
Become a Desklib member to get accesss

Students who viewed this