Finance and Funding on Travel and Tourism Assignment

16 Pages3786 Words281 Views

Added on 2019-12-17

Finance and Funding on Travel and Tourism Assignment

Added on 2019-12-17

BookmarkRelated Documents

FINANCE AND FUNDING ONTRAVEL AND TOURISM1

Finance and Funding on Travel and Tourism Assignment_1

Finance and Funding on Travel and Tourism Assignment_2

INTRODUCTIONFinance is lifeline of every enterprise whether it operates in any industry. Without financethe business can not exist in market. In the present case the travel and tourism company ispresented. To describe about the finance and funding the Carib happy hours company is to beselected. The present report describes that the cost and volume profit analysis is very importantto derive the cost and it describes about various pricing strategies. The present case is describesabout the various information appraisal techniques which helps to choose the project. The reportdescribes about the financial ratios of TUI group which operates in travel and tourism industry aswell as it describes about the various management accounting informations.A.) According to the given scenario, the Carib happy hours (CHTC) is a travel companywhich is planning a holiday trip to a holiday resort in summer lasting month. CHTC will charteronly its tourist and it also look to book the for in a hotel at the resort to accommodate its tourist.Further company charge airplane and hot5el commendation from its tourist at the £60000 inwhich it exclude a meal at hotel. While hotel will charge form CHTC £ 150 per tourist for meal.For this purpose a the Concept of CVP analysis and its importance in a financial management ofa travel and tourism business such as CHTCCVP is known as cost volume profit analysis which is a tool of planning a profit whichcompany can earn. This is also help in understanding a what all changes arises in a profit becauseof changes in variable cost, volume fixed cost and mix of product sold (Fowles, 2014). Furtherthrough the help of CVP company can usenr5stand the relationship between a different productsselling price and and change in variable cost. The tour company can achieve sale volume and bymaking a various products which company produce for selling purpose and for earning profit.There are some basic elements of the CVP analysis which are described belowCost: in CVP cost is the first elements of business which is certain cost that is incurs forcarrying out the business activity. CHTC used this cost for making a products and services for itscustomer. Volume; it is a second element of the CVP in which company analyses how much itneed to make a goods and sell to its customer (Vazquez and Federico, 2015). Fist CHTC3

Finance and Funding on Travel and Tourism Assignment_3

company need to decide how much it need to sell for a producing a good. On the basis of sellgoods are produce.Profit: it is the last elements in which tour company need to analyzed how much profitthey can earn by selling the products they made. For identifying the profit by deducting the costof manufacturing the product by a selling price.Illustration 1: CVP analysis(Source: Basic CVP analysis, 2016)CVP has a scope in a decision making of the CHTC tour company. Through thiscompany can easily identify how much product they need to made for fulfilling the customerneed. Moreover, through a cost and volume company can easily know how much they cangenerate the profit (Damodaran, 2016). This CVP also help in determine which products andservice increase the company profit. If company came to know which products are generating a4

Finance and Funding on Travel and Tourism Assignment_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Report On The Carib Happy Tours Company - Importance Of CVP Analysis

|15

|4556

|36

Finance and Funding in Travel and Tourism - Report

|3962

|40

Unit 2: Finance and Funding in the Travel and Tourism Sector

|13

|4213

|68

Concepts of CVP analysis and Its Importance : Report

|13

|4326

|233

CVP Analysis in Travel and Tourism Finance and Funding in Travel and Tourism INTRODUCTION 3 TASK 14 a. Definition of CVP Analysis and its importance in financial management

|14

|3715

|277

Concepts Of CVP Analyses and Pricing Methods : Assignment

|15

|4224

|185

Finance and Funding on Travel and Tourism Assignment