Financial Management of Travel and Tourism Business : Assignment
Added on -2020-07-23
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FINANCE AND FUNDING INTRAVEL AND TOURISM
Table of ContentsINTRODUCTION...........................................................................................................................................3TASK 1..........................................................................................................................................................31.1 Importance of costs and volume in financial management of travel and tourism businesses...........31.2 Pricing methods used in the travel and tourism sector.....................................................................51.3 Analysis of various factors which influence profitability of travel and tourism.................................5TASK 2..........................................................................................................................................................72.1 Various types of management accounting information.....................................................................72.2 Use of management accounting information as decision-making tool..............................................8TASK 3..........................................................................................................................................................93.1 Interpretation of financial accounts to assist decision-making..........................................................9...................................................................................................................................................................12Task 4 ........................................................................................................................................................154.1 Sources and distribution of funding for public and private tourism................................................15CONCLUSION.............................................................................................................................................17REFERENCES..............................................................................................................................................18
INTRODUCTIONFinance and funding is a necessary concept which is helpful for business firm inexplaining cost which can used through an organisation to invests in order to developing aneconomy. The travel sector is a fastest or rapid growing sector which provides many advantagesfor company. This present business report is depending on Carnival plc which is regarded aslargest travel firm in all over the world. In order to developing an economy of United Kingdom,this business firm give its more contribution. Under this present business report various methodsof pricing which are used in the industry of Travel and Tourism (Evans, Stonehouse andCampbell, 2012). Carnival Company provides better travelling services to consumers so that theywill attracted towards firm. There is a discussion about the different pricing which organisationuses in its business or travelling process. Various kinds of management accounting system whichcould be used in the travel and travel sector will be discussed under this given report. In additionto this, distribution and many sources of funding for growth of many capital projects which areassociated with the travel will mention in this as well. TASK 11.1 Importance of costs and volume in financial management of travel and tourism businessesCarnival plc is a regarded as a largest travel and tourism organisation in world. Thiscompany has develops big portfolio of more brands which are situated in the Australia, NorthAmerica. The main motive of financial management of this company is to arrange all finance inorder to conducting business operations in an effective or better manner. There are some factorssuch as expenses as well as costs which are required to include in context to development alongwith productivity. By all these factors, packages of travelling for consumers are developed. It under travel and tourism, cost is regarded as a most necessary factor and helpful in examiningcost of travel packages which are travelling for visitors or travels. Carnival Corporation and Plcuses these factors at the time of taking decisions for an organisation. These factors are givenbelow as above:Cost- It is term as part of the money which a business firm used for conducting its business in abetter manner. It is regarded as most necessary component because without this firm cannot doanything (Henderson, 2010). It is necessary for Carnival Corporation and Plc to assure that sit
does provide the better prices to consumers so that they will attract towards the products of anorganization.Importance of Cost It is a necessary component for every business firm and it plays an essential role inmaking business successful. If in case cost of products of Carnival Corporation Plc will high thanit will not good for business firm and develops bad impact on its business. Cost minimisation- It is essential for travelling organisations to assure that they using minimumresources and also consuming the low cost so from this cost of goods will not be higher. It willbe helpful in enhancing the profit level of an organisation. There is a need to Carnival Companyto develop effective cost according to demands of consumers (Heung, Kucukusta and Song,2011). Decision making- Under this it is essential that firm should take the better decision related tobudget ns cost allocation in the favour of company. Before doing the activities, it isresponsibility of manager to conduct proper research otherwise its impact on productivity will bebad.Designing Financial Structure:In order to managing financial resources of Carnival company, there are many different types ofcost are included which are given below as above:Volume- Carnival Plc provides the better services and products to its consumers in all over theworld. There are some techniques and tools which are available at market and used throughreferred organisation to know proper and reasonable packages which are needed throughtravelling organisation in order to reach at its breakeven point, EOQ and many others. Significance of VolumeBreak even analysis- Itis kind of each business firm where firm wants to reach. This kind ofcondition is regarded as no profit and also no loss where company covers all costs which it spendfor developing better products and provide them to organisation in an effective or better manner.Economies of scale- It is that type of cost which is saved through firm through enhancing its producing level. So in context to this Carnival Corporation Plc should save their cost through using scale of an economy (Morrison, 2013).
Diseconomies of scale- Under this, when scale of an economy is not properly working in aneffective or better manner. So in context to this Carnival company should assure and it does notindulge in any kind of situation that it impact in a wrong way. 1.2 Pricing methods used in the travel and tourism sectorCarnival Plc business firm is a travelling business firm and also trying to take the manykind of travelling packages to consumers in a better manner. In context to take better decisionconcerned with issuing costing of different travelling packages and also planning methods whichshould use then some tools and techniques will be used which are given below:Seasonal pricing- During full year, there are several kinds of seasons which go and also comewith tourists. The visitors come in various seasons and also visit the various kinds ofdestinations. In context to this, Carnival Corporation mainly makes charges which are based onthe season so from this consumers will not face any types of issues. Rack rates- These are total cost which are used through organisation to elaborate its priceswithout any types of discounts as well as offers. So Carnival companies make better prices andgive discounts to consumers so that they will attract more. Discounting- This kind of method is connected with discounted components which are put on thedifferent travelling organisations inside of a firm. Under this, Carnival Company gives discountsto its consumers in context to attract them. So, it is necessary top included this factor. Last minute costing-These kind of costing are designed through an organisations in order tocalculate the actual cost which is incurred at last minute. Sometimes, consumer makes a plan tohet cancel its flight it trips so under this case Carnival Corporation Company get profit with thehelp of charging cancellation fees (Papatheodorou, Rosselló and Xiao, 2010).There are some pricing given below:Cost based method- It is regarded as a most simplest method of identify the profit as under thisfixed margin is linked with travelling firm so that it can earn more profit in a systematic or bettermanner. It is a simplest and effective method which Carnival Company uses to earn more profitat market place.
Market completion based- Under this, firm can identify its cost which is depends on competitionat market place. It is necessary for Carnival plc Company to assure that its prices should beminimum as comparison to its competitors at market place. This firm provides the better qualityof services at reasonable cost for earning more profit.1.3 Analysis of various factors which influence profitability of travel and tourismIt is necessary that Carnival Corporation and Plc should execute the better managementrelated strategies in order to conduct the all activities and operations of business in an effectiveor better manner ( Nielsen and Spenceley, 2011). It is a duty of manager to select bestmanagement related strategies so that it will be beneficial for travel organisation in a bettermanner. In addition to this, good planning is need for Carnival Travel Company. Under thismanagement should include its staff members in a better way. Activities and operations whichare conducted through Carnival organisation concerned to advertisement as well as promotionmust be done in a proper way for aware consumers regarding services or products which areproviding at market place. On the basis of existing business environment, marketing planningplays a necessary role in Carnival plc Company to enhancing profit level of business. In additionto this, it is necessary for managers to display all expensed which are incurred by anorganisation. It will be helpful in analyse all profit of business in a systematic manner. Thefactors are divided among the two parts internal and external. INTERNAL FACTORS- These factors impact on business from internally. Under this includes:Cost of manufacturing- This factor is having the better power to impact travelling sectorin a better manner. In case if Carnival Corporation Company, decrease its production cost then inthis case cost of services will be high and also vice- versa. It is helpful in enhancing productivityand development of an organisation (Pike, 2012).Staff members- Under this, it is necessary for employees to treat visitors in a better wayby providing them good customer services. From this they will attract towards companyotherwise consumers will be dissatisfied from services and products of Carnival Corporation andPlc.EXTERNAL FACTORS- These factors impact on the tourism activities from externally. Itconsists:
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