Finance and Accounting in Tourism: Report on Management Techniques

This report explores the application of management accounting principles within the tourism industry. It delves into various aspects, including the role of financial statements, variance analysis, and budgeting in managing tourism-related businesses. The report also discusses the importance of forecasting and how it aids in making informed decisions. Furthermore, it examines the techniques used for capital investments and the methods for evaluating the financial viability of projects, such as the payback period, discounted cash flow, and sensitivity analysis. Overall, the report provides a comprehensive overview of financial management practices tailored to the tourism sector, highlighting the significance of these tools for sustainable growth and effective decision-making.

Finance and funding in
travel and tourism
Task

Table of contents
 Introduction
 Different kind of management accounting information
which used in tourism sector
 Use of management accounting information as a
decision-making tool
 References
1

Introduction
There are different system of administration of accounting
information that can be opted for the performance
increment of organisation along with supporting the
company with long term benefits for better growth.
2

Different kind of management
accounting information which used in
tourism sector
Budget: Budget is designed through finance division of the
respected company to manage the whole organisational
expenses over the benefits and revenues.
3

Cont..
Financial Statement: These is the essential elements of
organisation which is being optimised for presenting or
recording the attempted expenses, records and income of
organisation of each annum. It involve the income
statement, retained earning, cash flow and funds, balance
sheet along with many other information.
4

Cont..
Variance Analysis: The organisation analysis for monitoring and
management of actual result with the determined outcome of
organisation. The process assist in meeting the business operations
idea that can influence their income statements conveniently.
5

Cont..
Forecasts: This process is opted by organise to attain the
upcoming trends by using the different previous used
information or data. The Dalata Hotel group depend on
the market demand that they deal with. After forecasting
process, organise can coordinate some certain resources
along with techniques which can be used in the effective
way.
6

Use of management accounting
information as a decision-making tool
Business company attempt large amount of investment in
the company of capital projects and funds which aims
over gaining more benefits or making the ROI. So the
techniques and methods use various capital projects that
can be analysed.
10

Cont..
The benefits of enterprise can be maintained in effective
manner that is discussed under:
 Increasing Capital
 Investment
 Trends Comparison
 Forecasting

Cont..
A business organisations invest their capital and funds on
the capital projects for the return or benefits purpose. So
the methods by which the projects are assessed from
which the benefits can be earned are mentioned here:
 Payback period
 Discounted Cash
 Flow Return Accounting
 Rate Sensitivity Analysis and Investment Risk

References
John, S. and Susan, H., 2015. Business travel and tourism.
Koutra, C. and Edwards, J., 2012. Capacity building through
socially responsible tourism development: A Ghanaian
case study. Journal of travel research. 51(6). pp.779-
792.
Ma, M. and Hassink, R., 2014. Path dependence and tourism
area development: the case of Guilin, China. Tourism
Geographies. 16(4). pp.580-597.
Morrison, A. M., 2013. Marketing and managing tourism
destinations. Routledge.
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