Finance and Funding in Travel and Tourism - Akaglo
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Added on 2020-10-22
Finance and Funding in Travel and Tourism - Akaglo
Added on 2020-10-22
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Finance and Funding inTravel and Tourism
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Importance of cost and volume in financial management of travel and tourism..................11.2 Analyse pricing methods used in the travel and tourism sector............................................31.3 Analyse factors influencing profit for travel and tourism businesses...................................4TASK 2............................................................................................................................................52.1 Different types of management accounting information used in travel and tourismbusinesses....................................................................................................................................52.2 Use of investment appraisal management accounting information as a decision-makingtool...............................................................................................................................................6TASK 3............................................................................................................................................73.1 Interpret travel and tourism financial accounts.....................................................................7TASK 4............................................................................................................................................94.1 Sources and distribution of funding for the development of capital projects associated withtourism.........................................................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONFinance and funding is very important in order to run their business operations in aneffective manner. This help them in attaining sustainability, according to the current marketscenario, travel and tourism is a growing sector. Most of the companies are now establishingthemselves so as to earn maximum benefits. Company that is taken in this assignment is AkagloTour Company that is a travel agency that provides holiday trips to its clients. Report will throwlight on the importance of costs and volumes in financial management of travel and tourismbusiness (Evans, Stonehouse and Campbell, 2012). Analysation of pricing methods used in traveland tourism sector is included in this. Different types of management accounting informationthat is used in business in travel and tourism. Interpretation of financial account is being done inthis report and lastly, sources and distribution of funding for development of capital projects thatare related to tourism is mentioned in this assignment. TASK 11.1 Importance of cost and volume in financial management of travel and tourismAkaglo Tour Company is one of the leading companies in United Kingdom that providestravel facilities to customers who visit to their country. Operation and management departmentof any business tries to cut off the prices so that company can get maximum benefits and profits.Further in order to do so organisation uses various kinds of tools and techniques so as to controlthe cost this will enable them in increasing their profits and market shares as well. Therefore,cost management is very essential for a company. There are different kinds of costs exist areavailable in the market area and some of them are stated below: Variable cost:This is consider as the price that production department estimate whilemanufacturing a product or a commodity. It can vary from department to department andfluctuates as per the requirements of production unit according to the substance required. Thisincludes some of the elements like labour cost, direct expenses and the price that is needed forproducing a good (Gibson, Kaplanidou and Kang, 2012).Fixed cost: Under this, cost remains the same at every level, any kind of changes andmodification in the process doesn't affect the fixed cost price. If the company faces any losesthan also they have to bear the damage and their process of manufacturing and giving servicesgoes on. Some of the example related to fixed cost are interests, loan, debentures, rent etc.,1
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