Finance and Funding in Travel and Tourism Sector : Pricing Techniques
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Added on 2021-02-18
Finance and Funding in Travel and Tourism Sector : Pricing Techniques
Added on 2021-02-18
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Finance and Funding inTravel and Tourism Sector
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1: Importance of cost and volume in financial management of T&T business........................11.2: Pricing techniques which are implemented in travel and tourism sector.............................21.3: Factors that influence profits earn on the holiday trip..........................................................3TASK 2............................................................................................................................................42.1: Different type of management accounting information........................................................42.2: Use of investment appraisal techniques as decision-making tools ......................................5TASK 3............................................................................................................................................53.1: Interpretation of financial statements of tour and tourism company....................................5TASK 4............................................................................................................................................94.1:Analysis of source and distribution of funds for the development of capital projectassociated with tourism................................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONFinance is defined as the systematic administration of fund and money and includesactivities like investing, borrowing, lending, budgeting, saving, and forecasting . Funding is anactivity which includes providing financial funds, usually in monetary term, or other amountsuch as time or effort, to finance a demand, arrangements, and activity, by an enterprise.Financing and funding are used in business to allocate its monetary or non monetary resources inrequired areas and better utilisation of these available resources. This report describes financeand funding activities in the context of travel and tourism sector company EUROCARIBTOURS. Relevant approaches in relation to financing and funding are discussed and issues areaddressed in this context (Evans, Stonehouse and Campbell, 2012). This reports exhibitsimportance of costs and volume in financial management of travel and tourism businesses, and asystematic analysis of pricing methods and factors that will influence profits of an enterprise.TASK 11.1: Importance of cost and volume in financial management of T&T businessEurocarib tours :Eurocarib toursis a major London-based European tour operatorfocusing on Caribbean holidays. Eurocarib tours is planning a summer holiday trip to aCaribbean Holiday Resort lasting one month. The company will charter an air plane that carriesonly its tourists. The company will also book a floor of a hotel at the resort to accommodate itstourists. The travel and tourism industry provides an attractive profitability conditions inbusiness in present scenario. In this industry a major growth can be seen in weekends andholidays. While working in this industry a business organisation go through various aspectsrelated with finance such as :Cost: Cost is a major part of financing and funding, in travelling and tourism industrycost is the amount occur in in financing of tour packages for customers. Estimation of cost helpsin achieving targeted profits, in tourism and travel business predetermination of cost helps toorganise a trip and for providing packages to customers (Kimbu and Ngoasong, 2013).Volume: Volume refers to quantity of products and services. Cost and budget areallocated to volume of product or service. Volume denotes the level of production in quantityterms. In the context of tour and travel business it can be seen as number of tickets people arepurchasing from company. 1
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