Finance and Funding in Travel and Tourism: A Comprehensive Analysis

Finance and funding in travel and tourism

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. (M1)........4
P1.2 Analyse pricing methods used in the travel and tourism sector. You should use
relevant examples from different cruise brand of Carnival Corporation & PLC. (M1).6
P1.3 Analyse factors influencing profit for travel and tourism businesses using..................7
Carnival Corporation & PLC cruise brand case study. (M3).........................................7
Task 2.........................................................................................................................................8
2.1 Explain different types of management accounting information that could be used in
travel and tourism businesses.................................................................................................8
2.2 Assess the use of management accounting information as a decision-making tool for
Dalata Hotel Group PLC........................................................................................................8
Task 3.........................................................................................................................................9
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). (M2).............................................................................................................................9
Task 4.......................................................................................................................................10
4.1 Analyse sources and distribution of funding for the development of capital projects
associated with tourism. (M3)..............................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

Introduction
This report has stated that travel and tourism sector is one of the renowned sectors in the
global economy. In this report factors pricing methods and concepts that are affecting the
business of Carnival Corporation has been discussed. The various types of management
accounting tools and their use has been discussed in the poster prepared in the second task of
the report. In third task the financial position of the company has been discussed based on the
financial report generated by the company. In forth task of the report sources of funds
required by the tourism sector and how they are distributed has been discussed.

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. (M1)
Introduction
This task of the report has discussed the concept of cost and volume, various methods of
pricing and also the factors that has influenced the travel business of Carnival Corporation
Plc.
Both the cost and the volume play a vital role in supervising the business of travel and
tourism. Cost and volume also helps the top-level management in the process of decision
making in the company and also helps in assessing the possibility of the risk involved in the
company. So, these concepts have been discussed in detail below.
Cost concept
In order to explain the concept of cost the, it is important to held a brief discussion on the
various types of cost. These costs may be direct, indirect, fixed and variable. An explanation
of such cost has been given below.
Direct costs
These are the costs which are incurred in the production of specific goods and the services.
Such costs can also be referred to as production cost as they are incurred at the time of
production. Direct cost incorporated many components such as labour, material, expenses and
human resources. It is mandatory for the company to incur such costs (Kimbu and Ngoasong,
2013).
Indirect costs
The cost which are not directly related to cost object are termed as indirect costs. The nature
of such costs can be fixed as well as variable. These costs can be related to the security,
personnel or even administration. Such costs are also called factory costs.
Variable cost