Finance and Funding Table of Contents
Added on 2020-12-09
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FINANCE ANDFUNDING
TABLE OF CONTENTSFinance and funding.........................................................................................................................1INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P 1.1 Significance of Cost and Volume..................................................................................1P 1.2 Pricing Methods............................................................................................................2P 1.3 Factor influencing profit of travel and tour business....................................................3TASK 2............................................................................................................................................4P 2.1 Various management accounting information..............................................................4P 2.2 Use of management accounting information................................................................4TASK 3............................................................................................................................................5P 3.1 Interpretation of financial accounts of Dalata Groups of Hotel and Plc.......................5Interpretation:......................................................................................................................7Task 4...............................................................................................................................................8P 4.1 Sources and distribution of Fund..................................................................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTION Social and economic phenomenon of modern civilizations which is very much in trend inmodern civilization is tourism. The main objective of the report is to thrive out all the financialinformation of the two Plc on the basis of given scenario. Dalata Hotel Groups and CarnivalCorporation are the two hospitality providing industries. In this report we have analysed all thefinancial information related with these two companies. The report deals with the current imageof all the financial aspects of the travel and tourism company. In this report we have gone for thelast two-year performance of the company with the help of financial analysis. Discussion is alsoone of the sources and funding for public or non-public tourism development. Cost and volumeanalysis is also done for the carnival corporation. This report also shows the different pricingmethod with various management accounting information, powerful tool for decision making. TASK 1 P 1.1 Significance of Cost and Volume Carnival Corporation & Plc is world's leading cruise line and largest cruise holidaycompany in the world, Carnival Corporation & Plc is experiencing a dynamic growth in thebusiness despite of facing challenges as global crisis, marketing changes, different consumerbehaviour. The cost and volume profit are tool for financial analysis to find the betterunderstanding of cost and net revenue, it describes the relationship between cost, revenue, profitand volume that helps for further decision making of financial management of CarnivalCorporation & Plc. To find the cost and volume of the business certain assumption are taken intoconsideration like all units are sold and the fixed variable cost will remain same (Otley, 2016) .The cost and volume analysis help to find how the cost of the company is used and how it relatesto the volume of activities of Carnival Corporation & Plc. In relation to our company the costand volume analysis plays an important role to control and make plan for financial matter of thecompany. The cost and volume tools are also important to analyse the breakeven point, in a business abreakeven point is the level of activity where the revenue and the total cost is at the same levelwhich means there is no profit or loss in the business. With the help of cost and volumetechnique all the financial data can be re considered so that the management of the company canmake better future plan and helps to minimize the loss. Our Case study focuses on the1
importance of cost and volume analysis tool for the financial management of CarnivalCorporation & Plc.Importance of cost-volume – profit to Carnival Corporation & plc. :cost-column-profit analysis will help the company to plan and analyses the future need onan effective manner. The break even will help in ascertained the amount of sells of packages required to reacha point where fixed and variable cost can be covered.It will help the management to make effective decisions regarding the cost and volume ofthe packages offered to the tourist. P 1.2 Pricing Methods A good mix of marketing strategy and financial analysis can help in setting the pricingmethod for tourism sector. As there is no such pricing method for traveling sector because of itsrarely identical location, people and the components for the travelers. The tourism business isdeveloping its brand and market share, it’s difficult for travelers to get the general pricing fromthe star rating accommodation company, so the pricing strategies are important for the tourismsector as well (Renz, 2016). The pricing strategies of the traveling market is based oninformation like the operating cost, type of market, uniqueness of your business, pricing ofcompetitors etc. the pricing methods of tour ant traveling sectors are:Rack Rates: The official rates before any discount applied can be termed as rack rates,which is being provided to the wholesalers and distributed on the brochures. During the peakholiday season, the rack rates for operation remain same without day to day discounting. Forexample: Seaborne cruises is ultra-luxury cruising in smaller ships, rack rates method isapplicable for small cruise ships. Seasonal Pricing: this method is important as there are different periods of holidayseach year like school holidays, public holidays. Different price level can be covered throughoutthe year to cover low and high seasons.Discounting: To attract more travelers discounting is an important method of pricing.Discounts are generally given during the off season, but the implementation of discount canreduce your profitability. Tourists can become habitual of discount tickets which will make it difficult to charge normal rates or will devalue your2
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