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Financial Decision Making for Travel and Tourism

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Added on  2023-03-21

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This presentation focuses on the financial decision making process for Thomas Cook, a leading international travel and tourism organization. It discusses the sources of long-term finance, debt and equity implications, short-term investment decisions, cost behavior, cost-volume-profit analysis, and investment decisions. The presentation concludes that a balanced mix of debt and equity is important for managing leverage, and recommends using net present value (NPV) and internal rate of return (IRR) for long-term investment decisions.

Financial Decision Making for Travel and Tourism

   Added on 2023-03-21

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Financial decision making for
Travel and Tourism
Financial Decision Making for Travel and Tourism_1
INTRODUCTION
• Thomas Cook is leading international travel and tourism organization
that put customers at the cornerstone of profitable growth.
• Recently, it entered into strategic partnership with LMEY investment
that is a Swiss-based company.
• The aim of the presentation is to identify relevant financial sources to
satisfy its financial requirement for the expansion programme and
investment appraisal techniques to assess investment viability.
Financial Decision Making for Travel and Tourism_2
Financing Decisions
• Sources of long-term finance
• Long-term debt like bank loan
• Equity: Raising money through investors
Financial Decision Making for Travel and Tourism_3
Debt implications
• Fixed interest obligation
• No dilution of business control
• Tax shields on interest payment
• Bankruptcy implications
Financial Decision Making for Travel and Tourism_4

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