Finance and Funding in the Travel and Tourism Sector - UKCBC Report

This report delves into the critical aspects of finance and funding within the travel and tourism sector, focusing on the application of management accounting information. It highlights various types of management accounting systems, including financial statements (balance sheets, income statements, and cash flow statements), budget reports, variance analysis, and management information systems, using the DALATA Group as a practical example. The report further examines how management accounting information serves as a vital decision-making tool, covering strategic, operational, and tactical decisions. It also discusses the importance of forecasting and setting prices effectively, illustrating how companies like DALATA Group leverage these tools to attract customers and maintain service quality. The analysis emphasizes the role of financial strategies in achieving organizational goals and gaining a competitive advantage in the travel and tourism industry.

Finance and Funding
in the Travel and
Tourism
Sector

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

Different types of Management Accounting
systems
Management accounting information is concerned with internal
decision makers as well as managers. It is an important necessary
tool which is helpful in taking right decision related to business in an
effective or better manner. Types of accounting system given
below:
• Financial statement-
• Budget report
•Variance analysis
•Management Information System

Financial Statements
Balance sheet- It is a financial statement which is helpful in
providing information and data related to liabilities and assets
of DALATA group.
Income statement- This is also a financial statement under which
the details related to expenditure and income are mentioned.
Cash flow- It is helpful in identification of the cash firm which
DALATA Group generated from investing, operating and also
financing all operations and activities.

Balance sheet of DALATA Group

Income Statement

Cash Flow

Management Information System
This tool is helpful in determining the information technology as
well as process of business. In Dalata Hotel Group Plc, major
aim of management information system is to give proper
review which explains about performance of an organization
in addition to generate relevant information. This system is
necessary for employer to take some corrective decisions
which are beneficial for company. it is helpful in achieving
aim and goals of company in an appropriate way and also
provides competitive advantage to business.

Software using DALATA Group
DALATA group using the TRAVELSOFT business management
and travelling software. It is helpful in determining accounting
needs such as receipts and payments, outstanding statements,
service tax etc.
For an example- Dalata Hotel company developed its revenue
year on year 28.75% from 225.67m to 290.55m while its net
profit improved 61.49% from 21.63m to 34.92.

Management accounting information as a
decision-making tool
Decision Making Tools
Strategic- It is helpful in developing effective strategies and
policies for initial stage. Top management of Dalat Company
develop effective gaols which gives a proper direction.
Operational- It is helpful in implementation of plan so that
every employee can do their activities in a proper manner.

Continue...
Tactical- Under this, workers work by following the plans
and policies to achieving the organisational aims and
objectives.
For an example- DALATA company prepares its pricing
strategiues on the basis of incopme level of people. So,
from this large number of peoepl attracted towards
company.

Forecasting
It is necessary for an organisation to produce goods and services
on the basis of needs or tastes of consumers in an effective
manner. In a business firm, sales forecasting is concerned with
gaol and vision of company in order to achieve the set
objectives in specific time period.
For an example- On 10th feb, 2018 forecast between 4 polled
investment analyst to covering Dalata hotel advises that this
firm will outform market.