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Finance in Hospitality industry - Assignment Sample

   

Added on  2021-04-16

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Finance
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Running Head: Finance in hospitality industry 1Project Report: Finance in hospitality industry
Finance in Hospitality industry - Assignment Sample_1

Finance in hospitality industry 2Task 1:a.5 source of services in hospitality industry:Following are few sources of findings which could be used by the hospitality industry to raise the funds:1.Private equity and angels 2.Debt finance 3.Personal finances 4.Enterprise investment scheme 5.Equity crow funding. b.Income generation method:Following are few methods, on the basis of which the revenue of the company could be enhanced:Methods Advantages Disadvantages Discounts 1.It would attract the customers. 2.Income would be higher. 3.Even in off season, company would be able to reach at BEP. 1.Total profitability level would be lower. 2.Not a good option for niche hotels. 3.Discounts can only be given in the off season. Occupancy and room rates 1.The lower room rate would make more influence on the guest. 2.Even in off season, company would be 1.Not a good option for niche hotels. 2.Discounts can only be given in the off season.3.Marketing cost
Finance in Hospitality industry - Assignment Sample_2

Finance in hospitality industry 3able to reach at BEP.3.Income of the hotel would be higher. would be higher. Food and beverages 1.Income of the hotel would be higher. 2.Good taste of food would attract the customers. 3.Goodwill of the hotel would be enhanced. 1.Extra fixed cost would be occurred. 2.Marketing cost would be higher. 3.Depends on the tasteof the food and choices. c.Financial management in hospitality industry:The main key decision maker in the hospitality industry is financial manager in context of finance. Finance manager evaluates all the financial transaction and performance of the company and make the new financial strategies on the basis of that. A financial manager is required to analyze every single factor related to financial position and performance of the company so that it becomes easy for them to make financial strategy for the business. d.Product or service costing:Following are few factors which must be considered by the companies which evaluating the cost:1.Customers 2.Profit 3.Positioning 4.Competitors. e.Gross profit margin or net profit margin:
Finance in Hospitality industry - Assignment Sample_3

Finance in hospitality industry 4Gross profit is calculated by deducting the cost of sales from total sales whereas net profit is calculated after deducting all the expenses of a particular period from total sales. Following is the formula to calculate the gross profit margin and net profit margin:Gross profit margin = (Gross profit / sales) *100Net profit margin = (Net profit / sales) *100The profit margin of XYZ is as follows:Calculation of profit marginSales € 25,310.70 Less: production cost € 17,360.00 Profit € 7,950.70 Profit margin (profit / sales)31.41%f.Sources of finance:Irish government could evaluate the following sources for the resorts:1.Private equity and angels 2.Debt finance 3.Government funds4.Enterprise investment scheme 5.Equity crow funding (Damodran, 2011). According to the study and evaluation, it is suggested to the company to consider the private equity and equity crow funding for the resorts. g.Generating income from holiday resort:The evaluation on the hospitality industry of the company briefs that the income could be generated by resort through many sources. The hotel, food and the adventures are the mainsources of the company. These should be the main focus of the management of the resort. h.Different income of sources:
Finance in Hospitality industry - Assignment Sample_4

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