Finance and Funding in Travel and Tourism Sector - Doc
17 Pages4726 Words77 Views
Added on 2020-10-05
Finance and Funding in Travel and Tourism Sector - Doc
Added on 2020-10-05
ShareRelated Documents
FINANCE ANDFUNDING IN TRAVELAND TOURISMSECTOR
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Importance of costs and volume in financial management...................................................11.2 Pricing methods used in travel and tourism sector................................................................21.3 Factors which are influencing travel and tourism sector......................................................3Task 2...............................................................................................................................................52.1 Various types of management accounting information (Dalata Hotel group plc)................5Financial statements....................................................................................................................5Budget.........................................................................................................................................62.2 Application of management accounting information as a decision making tool (DalataHotel group plc)..........................................................................................................................6TASK 3............................................................................................................................................83.1 Interpret financial statements of Dalata Hotel Group Plc for past two years........................8TASK 4..........................................................................................................................................114.1 Analysing sources and distribution of funding for capital projects in tourism...................11Sources.....................................................................................................................................11Non-Public Funding................................................................................................................11Capital Projects.......................................................................................................................12Tourism Information Point (TIP)-.............................................................................................12Small Scale Tourism-................................................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONFunding and finance is very basic aspect which has been required for particular amount of attention and time by any of thebusiness for better growth and even for economy. So with this perspective a travel and tourism company known as CarnivalCorporation Plc has been planning a trip and according to it cost volume and profit analysis is particularly done with the perfectstrategy. The present report is giving brief understanding on the significance of cost and volume in financial management. Thedifferent pricing methods which can be applied in the travel and tourism sector has been elaborated. Further it has been continued withthe factors which are influencing the profit for travel and tourism businesses. There are various applications of managementaccounting information which are used in business of travel and tourism. As there are various sources and distribution of funding fordevelopment of public and non public tourism and in last scenario all the sources are analysed properly.TASK 11.1 Importance of costs and volume in financial managementCost can be defined as the amount which has to be given or paid to buy or obtain anything and with reference to business, it isa monetary valuation of the material, time and utilities, resources and efforts which are consumed. Volume can be defined as theamount of expenses which are purely denoted in monetary aspects and it is a measurement of finance related to business. Cost volumeprofit analysis is usually referred as a process of planning that a management has been using for forecasting the future volume of anyactivity and cost which is incurred, profits which are received and sales which are performed. It gives proper analysis on the changesin sales and cost which are directly impacting the income related to future periods. Carnival Corporation and plc is the world's largestleisure travel company whose portfolio is of 10 global cruise line brands. This company even owns a tour company whichcomplements in cruise operations (Barr and McClellan, 2018).Cost and volume; both are essential for travel and tourism business. In the aspects of cost, it helps in cost reduction, decisionmaking, to improve the performance of management and in designing effective financial structure. Cost is a crucial factor as it givescost reduction in activities which are related to business and give high profit for business. It can be increased or decreased according1
to the requirement of business. The financial account of the business are managed by costs. The process of decision making on capitalbudgeting for getting the best return on the investment. The financial structure can be managed and designed with various costs oftravel and tourism activities which are linked with business. The different projects get various costs of the project which help inimproving the performance of financial management and for comparing the business's financial ability of travel and tourism.There are different kinds of volume with respect to business. There is basic necessity of volume analysis for the business liketravel and tourism. Travel and tourism business can save the money by applying economies of scale as it gained the saving of costwith increment in level of production. There is need of determining the process of break-even analysis at the point where thebusinesses can recover the initial cost which has been spent on the earlier expenses. For the business like travel and tourism, it isessential to determine break-even point to pertain the cost of covering duration. In the scenario, if economies of scale do not performeffectively then it is referred as diseconomies of scale. The tourism business, analysis of volume is essential to know about theworking of business.1.2 Pricing methods used in travel and tourism sectorThere are various methods of pricing which can be used by the business of travel and tourism and Carnival Corporation plcsuch as rack rates, seasonal pricing, last minute pricing, common pricing types as well as discounting and package deals (Praticò,Saride and Puppala, 2011). Rack rates: Every business must have rack rate i.e. full rate which is stated as rate where discounts are applied and which aregenerally given to the wholesalers and which is printed on the brochures for the coming season ahead. The full rate is usually appliedall the time without any discounting which is day to day and this is for attracting operators. For accommodating the operatorsespecially in the middle markets which will usually be charging full price for two months or a month to fulfil gaps. Cost oriented pricing method: It is the pricing method which usually adds certain margin to cost which enables for derivingthe margin from operations related to business. It is the easiest way for determining margin as it is very clear and understandable.2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Finance & Funding in Travel and Tourism - Assignmentlg...
|16
|4354
|50
Finance and Funding in the Travel and Tourism Sectorlg...
|20
|5077
|84
Finance and Funding in the Travel and Tourism Sectorlg...
|30
|3975
|193
Finance and Funding in Travel and Tourism Sectorlg...
|26
|4440
|201
Finance & Funding in Travel & Tourism Sector : Assignmentlg...
|21
|8067
|42
Finance & Funding in the Travel & Tourism Sectorlg...
|10
|2566
|44