Financial Decision Making in Travel and Tourism Sector: A Case Study of Thomas Cook

This presentation explores the financial decision-making process within the travel and tourism sector, focusing on the expansion plan of Thomas Cook. It delves into the types of decisions, including financing and investment decisions, and examines the financial plan developed for the company's expansion. The presentation highlights the benefits of a well-structured financial plan, such as improved operational efficiency, cost control, and profitability. It also provides recommendations for Thomas Cook, including securing funds from various sources, allocating funds effectively, conducting cost analysis, and implementing appropriate pricing strategies. The conclusion emphasizes the importance of sound financial decision-making for successful business expansion.

Financial Decision Making in
Travel and Tourism Sector
“For Thomas Cook group”

Table Of Content
 Introduction
 Types of decisions
 Financing decision
 Investment decision
 Financial plan of Thomas cook
 Benefits for Thomas cook
 Recommendations
 Conclusion
 References

Introduction
In this presentation the decisions
which will be made in the Thomas
cook in context of the expansion
plan will be considered. the
benefits which will be attained due
to them will also be discussed. The Presentation discusses :
 Investment decisions
 Financing decision

Types of decisions
In the business there are various types of decisions which will
be made and they include:
 Financing decisions
 Investment decisions

Financing decisions
Under this the decisions in
respect of the manner in which
funds will have to be collected
are taken. There are two
sources by which it can be
done and they are:
 Equity Share capital
 Debt capital

Investment decision
These are the decisions which
will be made in respect of the
investments to be made by
use of appraisal tools. In this
the manner in benefits will be
received by the use of the
funds will be identified. They
are of two types:
 Short term period
 Long term period

Financial plan of Thomas cook
A plan for expansion has
been set in which
following aspects are
involved:
 Sources that will be
used for fund
collection.
 Costs which will be
incurred in proposal.
 Pricing strategies which
are to be used in
company.

Benefits for Thomas Cook
By the help of the plan there will be various benefits which will
be obtained and they are:
 Proper conduction of operations
 No issues will be faced in respect of funds
 Cost control will be established
 Appropriate profits will be made

Recommendation
 Thomas cook shall obtain funds from government, equity
and loans.
 All the funds shall be properly allocated to various
departments.
 Cost analysis is to be performed so that level of activities
can be identified.
 Price skimming and marginal costing shall be used.

Conclusion
It can be concluded that:
 Financing decisions are helpful in expansion in
existing business activity
 Investing decisions are helpful in expansion in
new areas of business

References
 Pijourlet, G., 2013. Corporate
Social Responsibility and
Financing Decisions. In European
Financial Management
Association, 2013 Annual
Meetings.
 Perić, M. and Đurkin, J., 2015.
Determinants of investment
decisions in a crisis: Perspective
of Croatian small
firms. Management: journal of
contemporary management
issues, 20(2), pp.115-133.