Finance and Funding in the Travel and Tourism Sector

This document discusses the various types of management accounting information and its application in decision making in the travel and tourism sector. It also explores financial statements, budgeting, and solvency in the industry.

Setting Objectives
Research of Customers
Evaluating Competiton
Setting Budget
Considering Communication Channels
Developing Right Message
Project the right image
Legal Formalities
Monitor and Measuring
Evaluation of Campaign and Strategy
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Budget in £
Finance and Funding in the Travel and Tourism Sector
2.1 Various types of management accounting information (Dalata Hotel group plc)
Management accounting is referred as the daily transactions which are required to
be performed by the managers. It also helps in retaining the information regarding daily
accounting which helps in framing effective decision making. It helps for comparing past
account with future accounts of the organization. All information is recorded by the
managers with the perspective of monetary aspect. Dalata Hotel Group plc are using
different types of management accounting information such as;
Financial statements
It is a formal record of all the activities related to finance of Dalata Hotel
Group plc. All these statements are in written format which helps in quantifying
the financial performance, liquidity and strength of the company (Standing,
Tang-Taye and Boyer, 2014). All the financial effects related to business events
and each and every transaction are reflected in financial statements. Basically
there are 4 types such as:
 Balance sheet : It is also known as statement of financial position which
represents the financial position of the Dalata Hotel Group plc at given
date. This statement consists of three elements which are Assets, liabilities
and equities.
 Income statement : It is also referred as Profit and Loss Statement which
indicates the financial performance with respect to net loss or margin
within the specific period. It consists of two elements such as Income and
Expenses.
Budget
The organisation financial situation
is approached by management accounting
in operational way. It provides all the
information which helps Daltan Hotel
group plc for the process of planning and
controlling. There are several types of
budget such as:
 Financial budget: It traces the
amount that how business is
spending and receiving the finance
as it includes revenue, income from
core activity of company and even
costs from the capital expenditure.
It is used by managers for
2.2 Application of management accounting information as a decision making tool (Dalata Hotel group plc)
 Investment decisions: These are the decisions which are related for optimising the capital resources for earning high and
efficient return. As each and every business requires to be very careful for selecting the best investment option so it is one
where Daltan Hotel Group plc can adopt for the growth strategy.
 The management accounting information should be purely considered by business for taking appropriate decisions and for
best result in the future.
 Forecasting the financial helps in process of decision making by giving the overall structure of finance of Daltan Group that
where the resources will be utilised and how they will be affecting the usage of funds in the specific manner.
 For planning the finance of the organization and future financial transactions, budgets are been prepared. These helps the
manager for decision making and deciding the activities required for funding in the future.
 Cost of capital is most important factor for designing optimal and balanced structure of capital. While taking decisions
related to cost of capital there is need for considering the goal of management has to maximize the value of firm and cost of
capital should be decreased.
Solvency indicates the Daltan Hotel group plc' s capacity for accomplishing the long term financial commitments. It helps in
observing that the cash flow of the organization are sufficient to meet both long and short term liabilities. If the solvency is lower
than there is great possibility it will be doing default on the obligations of debt. Usually solvency ratio must be higher than 20
percent then it will be known as financially sound organization (Fratu, 2011). As it varies from industry to industry. For measuring