BTEC HND in Travel and Tourism Management: Finance and Funding Report

This HND assignment report focuses on finance and funding within the travel and tourism sector, specifically using EUROCARIB Tours as a case study. It covers four key tasks: Task 1 examines Cost-Volume-Profit (CVP) analysis, pricing methods, and profit influencing factors, including a viability analysis. Task 2 delves into management accounting information, including different types and investment appraisal techniques. Task 3 focuses on financial statement analysis, interpretation using profitability, liquidity, and investment ratios. Finally, Task 4 analyzes sources and distribution of funding for capital projects, particularly for a new hotel development. The report addresses various aspects of financial management, decision-making tools, and financial statement interpretation to assist decision-making in travel and tourism businesses. The report adheres to the BTEC HND guidelines and assessment criteria, aiming for Merit and Distinction levels.

Department of Travel, Tourism and Hospitality Management
HND Assignment Brief
Session: September 2018
Programme title BTEC HND in Travel and Tourism Management
Unit number and title 2 Finance and Funding in the Travel and Tourism
Sector
Assignment No/Title 1 of 1 Written report involving 4 tasks
Assessor (s) Dan Sookun/Awo Mahamed
Final assignment
submission deadline 07-12 January 2019
Late submissions
14-19 January 2019
The learners are required to follow the strict deadline set by the
College for submissions of assignments in accordance with the BTEC
level 4 – 5 submission guidelines and College policy on submissions.
Resubmission
deadline TBA
Feedback
In-class feedback will be available from formative assessment of the
initial submissions based on each learning outcome.
Final feedback will be available within 2 – 3 weeks of the assignment
submission date.
General Guidelines  The work you submit must be in your own words. If you use
a quote or an illustration from somewhere you must give the
source.
 Include a list of references at the end of your document. You
must give all your sources of information.
 Make sure your work is clearly presented and that you use
correct grammar.
 Wherever possible use a word processor and its “spell-
checker”.
Internal verifier
Signature (IV of the
brief) * Date

Department of Travel, Tourism and Hospitality Management
ICON College of Technology and Management
HND in Travel and Tourism Management
Unit 02: Finance and Funding in the Travel and Tourism Sector (L 5)
Session: September 2018
This unit will be assessed by a coursework consisting of 4 written tasks.
Task 1 for LO 1:
__________________________________________________________________
Context and Scenario:
The EUROCARIB TOURS is a major London-based European tour operator
focusing on Caribbean holidays. EUROCARIB is planning a summer holiday trip to
a Caribbean Holiday Resort lasting one month. The company will charter an
airplane that carries only its tourists. The company will also book a floor of a
hotel at the resort to accommodate its tourists. Both the airplane and the hotel
accommodation will cost EUROCARIB £120,000, the variable cost per customer
is £400, EUROCARIB will charge £1600 per tourist for the 4-Week holiday trip.
A. Examine the concept of CVP analysis and explain its importance in the financial
management of a travel and tourism business such as EUROCARIB [P1.1].
B. Provide an analysis of pricing methods that EUROCARB can use to determine the price
to charge each tourist on the trip [P1.2].
 M1: To achieve M1, you should have applied effective approach to study and
analyse the appropriate pricing methods with justification to be used by
EUROCARIB. [Task 1 B].
C. Analyse the factors that will influence the profit EUROCARIB will earn on the holiday trip
using the data provided in the scenario above [P1.3].
 D1: Evaluate the viability of the holiday trip if 90 tourists book to go on the trip
and draw conclusion with justification whether EUROCARIB should organize the
trip if it wants to earn a profit of at least £30,000 [Task 1 C].
Task 2 for LO 2:
________________________________________________________________
Context and Scenario:
EUROCARIB wants to improve its decision making procedures by adopting modern
management accounting decision making techniques. For this reason, the finance director
requires you, as a newly employed finance officer to draft a guide for use by colleagues.
A. Explain the different types of management accounting information that could be used in
EUROCARIB [P2.1].
M2: You should have identified and applied a range of techniques (such as variance
analysis) that can be applied in improving activities and performance within the company
such as the EUROCARIB.
B. Assess the use of investment appraisal techniques as decision-making tools [P 2.2]
using an example from EUROCARIB or other relevant company.

Department of Travel, Tourism and Hospitality Management
Task 3 for LO 3:
_________________________________________________________________
Context and Scenario:
You have been asked by the finance director to write a paper that explains financial
statements analysis to the directors of EUROCARIB.
A. Download the main financial statements of ANY travel and tourism company of your
choice and interpret the financial statements using appropriate ratios for profitability,
liquidity, and investment [P3.1].
 M3: Use appropriate approaches and structure to present and communicate the
findings in manner suitable for the management.
 D2: For this, you should have planned, organised and managed substantial activities
to collect data and analyse the company financial statements and to present it
appropriately.
 D3: Apply creative thinking in concluding whether the company is financially stable in
the long term on the basis of your analysis of profitability and liquidity (D3).
Task 4 for LO 4:
_________________________________________________________________
Context and Scenario:
In future trips, instead of going to hire a hotel for its tourists, EUROCARIB intends to
construct its own hotel in the Caribbean, having obtained a suitable site. That will cost £25
million.
A. Analyse the sources (both internal and external) and the distribution of funding the
company has for the development of the new hotel [P4.1].
Relevant Information
1. Assessment Criteria Related to the Learning Outcomes
Learning outcomes Pass Criteria
LO 1:Understand the
importance of costs, volume
and profit for management
decision-making in travel
and tourism
1.1 explain the importance of costs and volume in financial management of travel
and tourism businesses
1.2 analyse pricing methods used in the travel and tourism sector
1.3 analyse factors influencing profit for travel and tourism businesses
LO2: Understand the use of
management accounting
information as a decision-
making tool in travel and
tourism businesses
2.1 explain different types of management accounting information that could be
used in travel and tourism businesses
2.2 assess the use of investment appraisal management accounting information
as a decision-making tool
LO3: Be able to interpret
financial accounts to assist
decision-making in travel
and tourism businesses
3.1 interpret travel and tourism financial accounts
LO4: Understand sources
and distribution of funding for
public and non-public
tourism development
4.1 analyse sources and distribution of funding for the development of capital
projects associated with tourism

Department of Travel, Tourism and Hospitality Management
2. Basis for Merit and Distinction Criteria
Merit (M1, M2, M3) Distinction (D1, D2, D3)
Descriptors Indicative characteristics Descriptors Indicative characteristics
M1
Identify and apply
strategies to find
appropriate solution
M1: To achieve M1, you should have
applied effective approach to study
and analyse the appropriate pricing
method with justification to be used by
the chosen company.
D1
Use critical
reflection to
evaluate own work
and justify valid
conclusions
D1: Evaluate the viability of the
holiday trip if 90 tourists book
to go on the trip and draw
conclusion with justification
whether CHTC should
organize the trip if it wants to
earn a profit of at least
£10,000 [Task 1 C].
M2
Select/design and
apply appropriate
methods/technique
M2: You should have identified a and
applied range of techniques (such as
variance analysis) that can be applied
in improving activities and performance
within the chosen travel and tourism
company.
D2
Take responsibility
for managing and
organising activities
D2: For this, you should have
planned, organised and
managed substantial activities
to collect data and analyse the
company financial statements
and to present it appropriately.
M3
Present and
communicate
appropriate findings
M3: Use appropriate approaches and
structure to present and communicate
the findings in manner suitable for the
management.
D3
Demonstrate
convergent/lateral/c
reative thinking
D3: Apply creative thinking in
concluding whether the
company is financially stable in
the long term on the basis of
your analysis of profitability
and liquidity.
3. Preparation guidelines of the Coursework Document
a. All coursework must be word processed.
b. Document margins must not be more than 2.54 cm (1 inch) or less than 1.9cm
(3/4 inch).
c. Font size must be within the range of 10 point to 14 point including the headings
and body text (preferred font size is 11).
d. Standard and commonly used type face such as Arial should be used.
e. All figures, graphs and tables must be numbered.
f. Material taken from external sources must be properly refereed and cited within
the text using Harvard standard
g. Do not use Wikipedia as a reference.
h. Word limit must be strictly followed.
4. Plagiarism and Collusion
Any act of plagiarism or collusion will be seriously dealt with according to the College
regulations. In this context the definition and scope of plagiarism and collusion are
presented below:
Plagiarism is presenting somebody else’s work as your own. It includes copying
information directly from the Web or books without referencing the material;
submitting joint coursework as an individual effort.
Collusion is copying another student’s coursework; stealing coursework from another
student and submitting it as your own work.
Suspected plagiarism or collusion will be investigated and if found to have occurred
will be dealt with according to the college procedure. (For details on Plagiarism &

Department of Travel, Tourism and Hospitality Management
Collusion please see the student hand book)
5. Submission
a. Initial submission of coursework to the tutors is compulsory in each unit of the
course.
b. Student must check their assignments on ICON VLE with plagiarism software
Turnitin to make sure the similarity index for their assignment stays within the
College approved level. A student can check the similarity index of their assignment
three times in the Draft Assignment submission point located in the home page of
the ICON VLE.
c. All Final coursework must be submitted to the Final submission point into the unit
(not to the Tutor). A student would be allowed to submit only once and that is the
final submission.
d. Any computer files generated such as program code (software), graphic files that
form part of the coursework must be submitted as an attachment to the assignment
with all documentation.
e. Any portfolio for a unit must be submitted as a hardcopy to examination office.
f. The student must attach a tutor’s comment in between the cover page and the
answer in the case of Resubmission.
6. Good practice
a. Make backup of your work in different media (hard disk, memory stick etc.) to avoid
distress for loss or damage of your original copy.
7. Extension and Late Submission
a. If you need an extension for a valid reason, you must request one using an
Exceptional Extenuating Circumstances (EEC) form available from the College
examination office and ICON VLE. Please note that the lecturers do not have the
authority to extend the coursework deadlines and therefore do not ask them to award
a coursework extension. The completed form must be accompanied by evidence
such as a medical certificate in the event of you being sick.
b. Late submission will be accepted and marked according to the college procedure. It
is noted that late submission may not be graded for Merit and Distinction.
c. All Late coursework must be submitted to the Late submission point into the unit
(not to the Tutor). A student would be allowed to submit only once and that is the
final submission.
8. Submission deadlines: as above (page 1)
Submit to: Online to the ICON VLE only