Finance and Funding In Travel And Tourism Sector Finance And Funding In Travel And Tourism Sector

Running head: FINANCE AND FUNDING IN TRAVEL AND TOURISM SECTOR
Finance and Funding in Travel and Tourism Sector
Name of the Student:
Name of the University:
Author’s Note

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FINANCE AND FUNDING IN TRAVEL AND TOURISM SECTOR
Table of Contents
Task 1...............................................................................................................................................2
Introduction..................................................................................................................................2
Importance of Cost and Volume in Tourism Industry.................................................................3
Analysis of the Pricing Strategies................................................................................................3
Factors Affecting the Profitability of Tourism Industry..............................................................6
Conclusion...................................................................................................................................7
Task 2...............................................................................................................................................7
Types of Management Accounting Tool in Tourism Business...................................................7
Application of Management Information System in decision Making Process..........................9
Task 3.............................................................................................................................................10
Analysis of Financial Performance of Fulham Shore plc..........................................................10
Task 4.............................................................................................................................................15
Reference.......................................................................................................................................16

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FINANCE AND FUNDING IN TRAVEL AND TOURISM SECTOR
Task 1
Introduction
The main purpose of this assessment is to analyse the business of Carnival Corporation &
plc for the purpose of establishing the relevance of cost and volume analysis in decisions making
process for the business. The assessment would also be discussing about the pricing strategies
which are followed for different brand of Carnival Corporation & plc. In addition to this, the
factors which can affect the profitability of the business is an important consideration for the
management of the company while taking major decisions for the business.
Importance of Cost and Volume in Tourism Industry
In recent times, the tourism industry has been flourishing as more and more people are
travelling to different tourist attraction place. In such a situation, the business of Carnival
Corporation & plc. The analysis of cost and volume analysis is undertaken by the management of
the company for the purpose of computing the breakeven which the business needs to consider
for the purpose of taking any decisions (Mauri 2016). The cost and volume analysis help the
business to take major decisions which are very important such as number of customers that the
business needs to serve, the scale of operations which the management should undertake (Pulido-
Fernández, Andrades-Caldito and Sánchez-Rivero 2015). In other words, CVP analysis allows
the management to take all major decisions regarding the financial matters of the business. The
cost and volume analysis allow the management to decide a breakeven point on the basis of
which decide at what level of operations is to be carried out by the management of the company
(Georgiev 2014). In addition to this, effective decisions can be taken regarding the variable and
fixed costs elements which are to be considered for the assessment. The computation process

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FINANCE AND FUNDING IN TRAVEL AND TOURISM SECTOR
which is considered for the analysis of breakeven as well as cost and volume analysis is quite
simple and easily interpretable by all.
In case of tourism industry, the costs are quite significant and entirely depends on the
volume of the services which is provided to the customers of the business. Therefore, it can be
said that this has an impact on the revenue, sales and profits which are generated by the industry.
Analysis of the Pricing Strategies
The pricing strategies in any business framework is significantly important as they
represent the value which is offered by the product in monetary terms. In addition to this, the
pricing strategies are formulated considering the totals costs which is incurred for the product
and also some profit element which the business wishes to earn (Phx.corporate-ir.net. 2019). In a
tourism industry, the main product which is on offer is tourism package for some exotic place
which includes all necessary services. There are a variety of pricing techniques which are
available in the market such as market-oriented pricing strategies, cost oriented pricing strategies
and several others pricing strategies.
The pricing strategy which is generally used in a tourism industry are explained below in
details:
 Cost-Based Method: The cost-based method considers the service average costs on
which a margin of profit is added to get the price at which the product will be offered to
the client. In some situations, as well, the businesses also tend to use breakeven analysis
for determining the prices of the products which is to be offered to the customers (Sahut
and Hikkerova 2014). Some of the Businesses also utilizes marginal pricing approach for
the purpose of determining the prices of the products which is to be offered to the client.