Finance and Funding in Travel and Tourism: A Comprehensive Analysis

Finance and Funding in Travel and Tourism
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Table of Contents
Introduction...........................................................................................................................................3
Task 1....................................................................................................................................................4
P1.1 explain the importance of costs and volume in financial management of travel and tourism
businesses using Carnival Corporation & plc as your case study.......................................................4
P1.2 analyse pricing methods used in the travel and tourism sector. You should use relevant
examples from different cruise brands of Carnival Corporation & plc..............................................6
P1.3 analyse factors influencing profit for travel and tourism businesses using Carnival
Corporation & plc cruise brands as your case study..........................................................................7
Task 2....................................................................................................................................................8
P2.1 explain different types of management accounting information that could be used in travel
and tourism businesses using Dalata Hotel Group plc as your case study.........................................8
P2.2 assess the use of management accounting information as a decision-making tool for Dalata
Hotel Group plc.................................................................................................................................8
Task 3..................................................................................................................................................10
3.1 interpret financial accounts of Dalata Hotel Group plc for the year ended 31st December 2017
showing at least two years performance (for example comparing 2017 to 2016)............................10
Task 4:.................................................................................................................................................15
4.1 analyse sources and distribution of funding for the development of capital projects associated
with tourism.....................................................................................................................................15
Conclusion...........................................................................................................................................17
References...........................................................................................................................................18
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Introduction:
This report has been prepared to get a clear understanding related to the volume, cost and
profits. This understanding is important for process of decision making. Case study of
Dalata Hotel Group Plc is considered for analysing the standing of management accounting
system. Dalata Hotel Group Plc’s financial publications depicts using the ratio analysis.
Multiple ratios has been calculated and discussed in detail. Financial data has been
interpreted in detail. A leaflet has been prepared which depicts the various sources of funds
and how those funds are distributed for the development of domestic and international
tourism.
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Task 1:
P1.1 Explain the importance of costs and volume in financial management of travel
and tourism businesses using Carnival Corporation & plc as your case study.
Cost and volume plays a vital role in in managing the financial resources of Carnival
Corporation Plc. This company is working towards promoting the services required for the
purpose of tour and travel. It facilitates cruise experience. It has acquired a large share in
market with its effective and efficient services. This has also helped the company to
promote it brand in the economy and needs of company stakeholders and shareholders can
be met out with great ease.
Cost concept
Cost concept is important for the company and it involves different types of cost. Volume
concept will be discussed later. These different costs are discussed in detail below:
Direct and indirect cost
These are a part of cost concept. Cost which relates to a specific good or a specific service
and be termed as direct cost. Labour, material and all the direct expenses are the vital
components of the direct cost. These costs are undertaken by the company at the time of its
manufacturing process and these are also known as compulsory costs. Indirect cost can be
elaborated as indirectly costs which are related with opreational proceses. These costs can
be fixed as well as variable. Cost for administration, personnel and security are example of
such costs. These are also referred to as factory cost (Akyol & Klilinc. 2014).
Fixed or variable cost
The cost which facilitates change in itself with the change in output or changes with change
in output are said to be variable costs. The nature of such costs is changing. These costs can
also be termed as dependent costs as they are dependent on the level of production. Whereas
the cost which is unlikely to change with level of production of goods and services. These
can be termed as fixed costs. The nature of this cost is remaining same at all the level of
output produced. Even if 1 unit is produced in the company such costs will be incurred.
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