Financial Management in Travel and Tourism : Assignment

Financial Management in Travel
and Tourism Assignment

Table of Contents
INTRODUCTION...........................................................................................................................1
1.TASK 1 ........................................................................................................................................1
1.1 The importance of costs and volume in financial management in tourism businesses using
Carnival Corporation & plc....................................................................................................1
1.2 Pricing method used in Carnival Corporation and plc.....................................................2
P 1.3 Factors affecting profit for Carnival Corporation & plc ..............................................3
TASK 2 ...........................................................................................................................................4
P 2.1 Different types of management accounting information...............................................4
P 2.2 The use of management accounting information as a decision making tool for Dalata
Hotel Group Plc. ....................................................................................................................5
TASK 3............................................................................................................................................6
P 3.1 Interpret travel and tourism money related records .....................................................6
TASK 4 ...........................................................................................................................................7
P 4.1 Sources and circulation of subsidizing for the improvement of capital undertakings
related with tourism ...............................................................................................................7
Conclusion.......................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Financial management is an important concept of managing the capital, cost and
expenses along with recording and analysing. The present report is in context of Carnival
Corporation & plc which is the largest travel company all around the world. It has a portfolio of
cruise brands in North America, Australia and Europe. The organisation's portfolio of 10 global
cruise line brands consist of Carnical Cruise Line, Holland American Line, Fathom, Princess
Cruises and Seaborne in North America, Australia and Europe. This report will determine
significance of costs and volume within financial management, it will also identify various
pricing methods which can be used in the travel and tourism industry. Factors affecting profit
and revenue in tourism industry will also be determined along with the methods of managing
information needed for travel and tourism services. The report will focus on analysing
management system related to finance in Dalata Hotel Group Plc. The interpretation defining
financial statements of Dalata Hotel will be also included in this assessment.
TASK 1
1.1 The importance of costs and volume in financial management in tourism businesses using
Carnival Corporation & plc
Carnival Corporation & plc is the world's leading travel company based in United States.
Firm has two major segments i.e. Carnival Corporation and Carnival Plc. Company is
headquartered at Miami, Florida in United States. They provide effective services related to
accommodation and tourism. Cost plays an important role in the success of the company and
therefore, it is important to measure different types of expenses and costing within the business.
Significance of Costs
 Direct cost – The cost which is directly associated with every expense of the company is
known as direct cost. There are few direct costing of the entity which is depreciation cost,
administration cost etc.
 Fixed cost – Fixed cost refers to the expenses which are fixed and do not get affected by
the change in volume of production and services. Fixed cost should be paid by an
organisation on regular basis for completing of each and every business activity
effectively.
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 Variable cost – Variable cost in an organisation may change and fluctuate with regard to
change in volume of production and services offered to the customers. The variable cost
depends upon level of production in the company efficiently.
Importance of Volume
 Break even analysis: If there arise an occurrence of movement and tourism organization,
equal the initial investment investigation is additionally central point to figuring and
evaluation of the edge of the element ground on the income gathered and connected with
the organization which has been assembled by arrangement of different sorts of tourism
administrations. This phase of the organization in which income equivalent to costs in the
firm adequately.
 Economies of scale: This is additionally the most vital factor for the business to increase
appropriate investigation of productivity of business in the organisation in pertinent
shape. This is utilized via Carnival Corporation and plc authoritative experts keeping in
mind the main goal of cost sparing. This may be utilized as a part of the business as far as
diminishing over costing in the organization while outfitting existing tourism benefits in
the company proficiently.
1.2 Pricing method used in Carnival Corporation and plc.
Pricing technique is the most important element for organizations such as Carnival
Corporation and plc. For ensuring specific pricing for each and every product or services offered
to the customers effectively. Various types of tourist cruise services are provided by the
company all around the world by different cruise brand of organisation by adopting different
types of pricing techniques to increase profitability as well as to enable efficient development of
the firm. There are various types of pricing methods which are mentioned as below:
1. Marginal costing approach – The marginal costing approach is an effective pricing
method which can be utilized by managers in Carnival Corporation & plc. For examining
proper cost or price of products and services. The expanding and diminishing in the
aggregate cost of creation keep running for making on extra unit for an action adequately.
This could be utilized as a part of some particular circumstance where the snout even
points happens in the business. This estimating strategy is being utilized by Holland
America Line, adequately with a specific end goal to ID of costing in the organization
proficiently (Vogel and et.al, 2016).
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