Finance and Funding in Travel and Tourism Sector - Assignment Report

This report delves into the application of management accounting information within the travel and tourism sector, specifically using Dalata Hotel Group plc as a case study. It explains various types of management accounting information, including forecasting and budgeting, and their roles in strategic planning and financial management. The report assesses the use of management accounting information as a decision-making tool, highlighting its importance in investment decisions, new product development, and variance analysis. It emphasizes the use of such information for meeting budgeting goals and addressing current financial issues within the competitive hospitality industry. The report concludes by underscoring the significance of management accounting systems in identifying areas for improvement and ensuring the achievement of desired business objectives.

FINANCE AND FUNDING IN THE TRAVEL AND TOURISM SECTOR
Forecasting: All businesses must conduct strategic
planning in terms of stating competitive within
industry. It defines about the process of planning of
future operation with the help of forecasting
approach, that can give positive benefits for the
organisation and also attaining its desired goals and
objectives efficiently. The major goals and
objectives of forecasting approach is that, to
following up prediction process to gaining proper
outcomes of the business within industry in perfect
form.
P 2.1 Explain different types of management
accounting information that could be used in
travel and tourism businesses
Management accounting information: Management
accounting information system can be used by Dalata
Hotel Group plc, in order to computing daily
transaction which is being occurred within business
environment during furnishing various types of
accommodation and hospitality services within the
hotel (Page and Hall, 2014). It assists the hotel manager
to gaining the detailed information about to daily
accounting and enables them to proper decision-making
process. It entitles to utilisation for furnishing provision
of relevant financial data to manager's operations to
making efforts to making effective decision for the
business by which they can meet their desired financial
and organisation objectives perfectly.
Budgeting: The forecasting process of the company allows the business managers to building a model of the
anticipated future revenue figure. After completion of forecasting process, the budgeting method tends to begin within business
environment. Dalata Hotel Group plc managers need to determine all future expenses which may be incurred within hotel while
furnishing its variety of accommodation and hospitality services within business operations ( Papatheodorou, Rosselló and Xiao,
2010). They must classify their budgeting according to various operational department such as Human resource management,
production management, operational activities etc. all the departments must be furnished effective budgeting within business
environment in sufficient form.
Variance analysis: This is also an effective approach that can be utilised by Dalata Hotel Group plc manager in order
to identifying the comparison figure between the actual realised expenses with the budgeting expenses of the business. Variance
analysis must be implemented by its professionals upon business operational functionalities in terms of gaining ascertain proper
differences between forecast and actual value of performance of the enterprise. With help of it, its manager will recognise those
areas in which they are not performing well as per predetermined forecasting values. It involves man-hour, machine-hour, raw
material consumption and production and other input time.P 2.2 Assess the use of management accounting information as a
decision-making tool
Management accounting information tools and mechanisms can be
utilised by Dalata Hotel Group plc organisational manager in order to
gaining efficient knowledge which assist them to making proper decision
in case of attaining desired and expected business goals and objectives.
Investment: With the assistance of management accounting
information system, its manager will be able to identifying those essential
factors of the business which can assist them to recognise proper
investment within business environment in effective form (Sharpley and
Telfer, eds., 2014). Corporation manager can identify those factors which
is delivering competitive advantages for business efficiently. Appropriate
proportion of investment mus be made by its various investors by which
decision making process can be made easier.
New product and services: New product and services might be
References:
Page, S. J. and Hall, C. M., 2014. The geography of tourism and recreation: Environment, place and space. Routledge.
Papatheodorou, A., Rosselló, J. and Xiao, H., 2010. Global economic crisis and tourism: Consequences and perspectives. Journal of Travel Research, 49(1), pp.39-45.
Sharpley, R. and Telfer, D. J. eds., 2014. Tourism and development: concepts and issues (Vol. 63). Channel View Publications.
Meeting budget: Budgeting is an approach which is totally based upon forecasting approaches of the business. The hotel manager can utilised of management
accounting information's varied of tools which can assist them performing the business functionalities as per predetermined ways. So its expected budgeting goals and
objectives might be accomplished perfectly. Professionals of the hotel can distribute budgeting amount volume to its various operational and functional departments
of the business in appropriate manner, so expected budgeting goals can be achieved.
Current issues and meeting objectives: Hospitality business faced variety of financial issues in current times because of competitive industry in the
business. Various types of issues are being faced by Dalata Hotel Group plc organisation (Sharpley and Telfer, 2015). Management accounting information system
tool enables its professionals to examining such barriers which being major cause against attaining desired success of business. Its tools assisting them to identifying
those areas where business is not performing well as per its business criteria, so they can identify them and make correction within them, so current issues can be