Finance & Funding in Travel & Tourism: Management Accounting Info

This report provides an overview of finance and funding within the travel and tourism industry, highlighting the importance of management information systems and management accounting in decision-making. It discusses various types of management information, including variance analysis, and their role in managing company performance. The report also covers key areas such as sales forecasting, raising capital (illustrated with the Dalata group of hotels example), and addressing profitability issues in a competitive market. The report references academic sources to support its analysis of accessible and sustainable tourism practices. Desklib offers a wealth of similar resources for students.

Finance and Funding
in Travel and
Tourism

Table of Content
 Introduction
 Different types of management information
 Management accounting information as a decision
making tool
 References

Introduction
Travel and tourism industry is one of the most rapid
growing industries across world. Most people now a days
want to spend their leisure time in travelling around the
world. Under this presentation mentions about the various
kinds of management information system.

Different types of management information
Management accounting is a very useful tool for crucial
decision-making process by the top management and also
managing the performance of the company. Management
requires information about the business to take any
decision about the company and its policies.

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Variance analysis : The actual result company has achieved
is compared with the budget report prepared at the
beginning of the year or quarter and it is checked whether
there is any variance from the same, if there is a variance
an analysis of the that variance is made it is called
variance analysis.

Management accounting information as a
decision making tool
Management accounting is concerned with recording,
analysing,interpreting all the transactions and data. The
data are of cost, capital expenditure, pay roll expenditure
etc. These data are very important for the management to
take any decision regarding the business and its
operations.

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Forecasting sales : Sales forecasts are made for year or
quarter end and than a comparison is made at the end of
quarter or year. If the results are positive the management
should appreciate subordinates and if the results are
negative the management should analyse and take
corrective measures.

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Raising Capital : The Dalata group of hotels are planning to
expand their business world wide for which they would
require capital to fund their projects. These can be funded
through debt or equity.

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Profitability issues : The Dalata group of hotels are facing
problems because of high competition in the market.
Company has to come up with new ideas and policies in
order to remain competitive in market and generate
profitability for the firm.

References
Buhalis, D. and Darcy, S. eds., 2011. Accessible tourism:
Concepts and issues. (Vol. 45). Channel View
Publications.
Choi, H. C. and Turk, E. S., 2011. Sustainability indicators
for managing community tourism. In Quality-of-life
community indicators for parks, recreation and tourism
management (pp. 115-140). Springer, Dordrecht.

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