Management Accounting in Travel and Tourism Businesses

LO2 - Understand the use of
management accounting
information as a decision-
making tool in travel and
tourism businesses

Table of Contents
Introduction ………………………………………...Slide 3
Different kinds of management accounting
information that can be used by any business in
travel and tourism and Dalata Hotel Group Plc
…………………………………………………….……..Slide 4
Assessing the use of management accounting
information as a tool for decision-making for
Dalata Hotel Group Plc …………..………….. Slide 8
Conclusion …………………………………………..Slide 12
Reference list ………………………………………Slide 13

Introduction
• Information from management accounting is one of the
major sources of information in any business for the
purpose of effective decision-making. The information
from management accounting is helpful especially for
managerial decision-making.
• In this presentation, an understanding of the use of
management accounting information as a tool for decision-
making in the companies of travel and tourism will be
established with the use of diverse types of management
accounting information that could be used in the
organizations of travel and tourism will be reviewed along
with the use of management accounting information as a
tool for decision-making for Dalata Hotel Group Plc.

Different kinds of management accounting
information that can be used by any business in
travel and tourism and Dalata Hotel Group Plc
Financial statements –
• Financial statements of an organization is another instrument of management
accounting that helps in effective decision-making (Biddle, 2015).
• The financial statements of a firm such as the profit & loss statement or the income
statement, the statement of financial position, the statement of changes in equity
and the statement of cash flows has a great influence on decision-making of the firm.
• This is true in case of tourism organizations as well (Biddle, 2015). For instance,
Dalata Hotel Group PLC can analyze its statement of consolidated income of the
preceding years along with the present year in order to analyze whether the net
earnings of the company have increased or decreased.
• This analysis helps the company in making decisions how to improve the company’s
profit along with reducing its costs.
• Similarly, the statement of financial position can help Dalata Hotel Group PLC in
assessing its liquid position and help the company in deciding how to maintain an
optimum liquid position.