Finance and Funding in the Travel and Tourism Sector

This presentation explores the concept of finance and funding in the travel and tourism sector. It discusses the various management accounting tools used by Dalata Hotel Group and how management accounting information is utilized as a decision-making tool in the organization. The presentation also highlights the importance of budgeting, financial statements, variance analysis, forecasts, and management information systems in the travel and tourism sector.

Finance and Funding in the
Travel and Tourism
Sector
TASK 2
DALATA Hotel Group

Table of Content
 Introduction
 Various kind of management information which applied in the travel
and tourism sector.
 Utilization of management accounting information as a decision-making
tool in an organization.
 Conclusion
 References

Finance and funding can be considered as a vast concept which plays an
effective role in creating effective decision as to carry out the business and
its activities in effective and efficient manner. It is a fundamental concept
that helps in evaluating a significant amount in which organisation can
invest in the growth and development of economy. As a large business
enterprises Dalata Hotel Group apply management accounting system as to
creating effective decision for companied profit.
INTRODUCTION

Various kind of management information which
applied in the travel and tourism sector
Management accounting can be considered as an administrative tool which are widely applied in
partnership decision making, performance management and devising planning. There are
various management information accounting methods that are applied by Dalata Hotel
Group in their business operations in which some are described as under:
 Budgets
 Financial statements
 Variance analysis
 Forecasts
 Management information system

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Important elements are described as below:
Budget Report: This can be considered as a fundamental tool which is required for a firm or its higher
authority to setting a budget for effectively conduct business and its operations in systematic manner.
Dalata Hotel Group conduct its business operation at a wide geographical area as to sustaining high
and profitable position at market place.
Financial Statement: It is an essential tool which is widely applied by firm and its higher authority to
taking an effective decision which is beneficial for firm and its growth. Management accounting
consist financial statement as an essential tool which helps in analysing the financial performance of
firm.
Variance analysis: This evaluated as an effective tool of management accounting which plays a vast role
in differentiating the actual and planned price policies of firm. This is significantly applied by Dalata
Hotel Group as to maintains their business operation at market area.

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Forecasts: Each business organisation have some goals and objectives which are required
for them to accomplish in desired period of time as to reaching at higher position at
market place. The process of forecast is based on the goals and objectives of firm as these
helps in creating differentiation among two firms as each business firm are having their
own set of goals and objectives.
Management Information System: It describes as an essential tool which is widely applied
by each small as well as large business organisations as to proper managing all
information and data regarding to firm and its various operations. Dalata Hotel Group is
focused on taking feedbacks as to analysing the performance of firm because this is more
effective in enhancing organisational performance through implementing changes as per
the needs of operations.

Utilisation of management accounting
information as a decision-making tool in an
organisation
Management accounting is the basic tools which is use for recording evaluating and reporting the
financial transactions of Dalata Hotel Group. This are some points which help the company
for proper decision making are as follows:
 Comparison with trends
 Forecasting sales
 New product and service
 Investment decision
 Raising capital
 Current issue against profitability

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Essential components are evaluated as below:
Comparison with trends: Dalata Hotel Group use this comparison to analyse the
performance of different years, it help in managing the various trends to make
decisions and execution of plan related to specific trends in future.
Forecasting sales: Manager of Dalata Hotel Group analyses the request of the customer
Dalata Hotel Group which is based on recent information regarding the customer.
New product and service : New product and services are implemented by the manager of
which helps to gain efficient information.

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Investment decision: Dalata Hotel Group must analyses the area where the investment is
to be made in future with the help of accounting manager of the company which
determines cost estimation related to the return and new investment in organisation.
Raising capital: Dalata Hotel Group implement new investment and new policy to raise
their capital by increasing sales of travelling package to get market return, it can be
raise through the personal capital with the help of private investor,m venture capital,
public capital and loans.
Current issue against profitability: Dalata Hotel Group face the issues regarding increase
the profitability due to new competitor exist in the market which tries to attract the
existing customer of the company leads to financial degradation of the company.

CONCLUSION
As per the above report it has been concluded that in this modern scenario travel and
tourism is the most growing and developing sector as contribute a huge amount
developing economic condition of firm as well as country. The major purpose of each
business organisation is to gaining high growth and success through serving variety of
goods and services as per the changing needs and wants of people. In today's modern era
people are very much concern towards pricing factor as this can be considered as an
essential element that plays a vast role in making decision in for purchasing goods and
services as to satisfying their needs and wants.

REFERENCES
Tribe, J., 2015. The economics of recreation, leisure and tourism.
Routledge.
Vanhove, N., 2011. The economics of tourism destinations. Routledge.
Xu, F., Morgan, M. and Song, P., 2009. Students' travel behaviour: a
cross‐cultural comparison of UK and China. International
Journal of Tourism Research. 11(3). pp.255-268.

Thank You