Importance of Cost and Volume in Financial Management of Travel and Tourism

FINANCE
AND
FUNDING

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1Importance of cost and volume in financial management of travel and tourism .............1
1.2 Pricing method that are used in travel and tourism sector................................................3
1.3 Factors influencing profit for travel and tourism ...........................................................4
TASK 2 ...........................................................................................................................................5
2.1 Various type of management information that are applied in the travel and tourism sector.
................................................................................................................................................5
2.2Use of management accounting information as a decision-making tool...........................7
TASK 3 ...........................................................................................................................................8
3.1 Travel and tourism financial statement............................................................................8
TASK 4 .........................................................................................................................................10
4.1 Sources and distribution of funding for growth of capital projects associated with tourism
..............................................................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
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 (Buhalis and Darcy, 2011). It is a fundamental concept that helps in evaluating
a significant amount in which organisation can invest in the growth and development of
economy. Carnival Corporation Plc is a chosen company for this particular report, it is the
world’s largest leisure travel and tourism company and deals in high quality goods and services.
This report contents the study about the importance of cost and volume in financial management
of travel and tourism organisation. Various pricing method that are used in travel and tourism
sector and factors that influencing profit and tourism organisation, different type f management
accounting information which could be used in travel and tourism sector, various sources and
distribution of Funding for the development of capital in tourism sector will also be discussed in
detailed manner.
TASK 1
1.1Importance of cost and volume in financial management of travel and tourism
As a large business organisation Carnival Corporation Plc is focused on satisfying the
needs and wants of targeted customers as to sustain them for long time (Papatheodorou,
Rosselló and Xiao, 2010). The company is having high brand image and a big portfolio of a
cruise brand in the country of Australia, Europe and North America. In this competitive era each
small as well as large business organisation are concern on effectively managing financial
resources as to attaining long term benefits and profit for firm. Tourism industry is categorized
among various sectors such as tour operators, hotel, good, beverage, transportation etc. as a
popular business organization Carnival Corporation Plc conduct their business operations in
different nation as to explore their business activities and attain high growth and success. For this
company need various cost and profits which are explained as below: Indirect Cost: These are called as the cost which is indirectly incurred in production
process of any products and services that create value for company’s profit. These sorts
of costs are not easily associated with the income age exercises (Choi and Turk, 2011).
Its cases are organization costs, lease, and so forth. This significance of this sort of use is
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