Finance and Funding in the Travel and Tourism Sector

Finance and Funding in the
Travel and Tourism Sector

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Significance of costs and volume in financial management of Carnival Corporation & plc
................................................................................................................................................1
1.2 Different types of pricing methods used in the Carnival Corporation & plc...................3
1.3 Various kind of factor that influencing profit for Carnival Corporation & plc................4
TASK 2............................................................................................................................................5
Covered in PPT.......................................................................................................................5
TASK 3............................................................................................................................................5
3.1 Interpret travel and tourism financial accounts in travel and tourism businesses............5
TASK 4..........................................................................................................................................13
Covered in Leaflet................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Finance is the basic need of business entity that assist in performing all activities and functions
routinely. Funding can be identifying as an act of giving financial resources, mainly in the term
of money and other values such as time or effort, to finance a program, project and need which is
used by a government and organisation (Buhalis and Darcy, 2011). The finance and funding in
travel and tourism industry is growing at a fast speed with aim to acquire knowledge of the
different concepts related to the financial performance and condition of the firm.
This report is based on two different organisations, including Dalata Hotel Group plc and
Carnival Corporation & plc. Main objective of this project is to provide a better chance for the
learner in order to evaluate duty of finance and the aspect of profit, cost and volume. Different
kind of pricing method which is also shown in this study. There are different types of factor that
highly influence profitability and sales in the tourism industry that identified. Types and
importance of management information help the manager in the decision making process.
Sources and distribution of funding is essential and significant factor for the development of
business capital, it is also describing in this assignment.
TASK 1
1.1 Significance of costs and volume in financial management of Carnival Corporation & plc
Carnival Corporation & plc is the biggest leisure travel and tourism company in all over the
world. It was founded by Ted Arison in 1972. Main aim and motive of this organisation is to
provide quick services to the visitors in an effective and efficient manner. In the company, there
are approx. 120,000 employees are work with each other. Objective of company is to offer
quality services to their potentials and target clients at reasonable cost (Choi and Turk, 2011).
Finance is a main factor of the each and every organisation because all activities and functions of
company is depending on sufficient money.
Financial management: It is mainly related with development and arrangement of capital
in the business operation and activities of Carnival Corporation & plc. It is deliberated that
tourism sector is involved of different cost and expanses is needed to be earned for the progress
of trip packages for customer at large.
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Cost of the tourism industry is very essential term for decide the price of the holiday
package for the traveller. Company using different kind of factors in regards to create effective
judgement in its business organisations. All these factors are describing as below:
Cost: It is related with entire expanses or sales for evolving a determined holiday packages
for the customers. However, an organisation has been acquiring some kind of expanses for rising
customer’s oriented travel and tour packages. In this different types of cost are highly included
which are determined as below:
Fixed cost: In nature this kind of cost is fix and help Carnival Corporation & plc in reducing
entire cost of trip (Evans, Stonehouse and Campbell, 2012). Usually, it is covered of agreement
payment to merchant, lighting expanses and further more.
Variable cost: In nature entire cost is variable and changes in the number of customer’s in
Carnival Corporation & plc such as recruiting new workers, expanses of tourist destination,
hiring accommodation and cabs services.
Direct cost: It is mainly connected with direct sales and expanses over the facilities
provided by the company in tourism industry holiday packages to visitors such as food, hotels,
spas and further more.
Indirect cost: It is connected with the indirect sale made on another organisation activities
of company such as hiring professional, expenses on promotion & advertisement and emerging
portals for the tourists.
Volume: Carnival Corporation & plc, it is a travel and tourism industry in United
Kingdom. It is a famous and popular company in all over the world. It has been offering its
services and facilities worldwide (Gibson, Kaplanidou and Kang, 2012). There are large number
of techniques and tools which is followed by enterprise to mainframe the ideal volume holiday
trip that generates maximum profit such as Breakeven point, EOQ, etc. These are calculated with
the assist of available turnover and stock in the allotted time period.
Profits: It is identifying as a one of the essential and important factor that identify the
business growth and development in competitive marketplace. Each and every business
organisation work with earning more provide and revenues as well as achieving log term goals
and objectives in limited time period. It is the volume of variances which is calculated by
reducing cost of the trip from the income received by business entity.
Importance and significance of profit, cost volume of Carnival Corporation & plc
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