Finance and Funding in Travel & Tourism: Dalata Hotel Group Report

This report provides an analysis of finance and funding within the travel and tourism sector, with a specific focus on the Dalata Hotel Group Plc, the largest hotel operator in Ireland and the UK. It explores various types of management accounting information used by travel and tourism businesses, including financial statements (balance sheets, income statements, and cash flow statements), budgets, break-even analysis, and variance analysis. The report highlights the importance of these tools for decision-making, such as forecasting, price setting, investment strategies, and addressing current issues. It concludes that a thorough understanding and application of these financial tools are crucial for the Dalata Hotel Group Plc to evaluate its position, plan for the future, and adhere to accounting standards.

Finance and Funding in Travel
and Tourism

Introduction
• The management consulting firm is focusing on the
business of travel and tourism sector.
• Different types of management accounting
information information is used by travel and tourism
business.
• The system is also used as decision making tool for
the Dalata Hotel Group Plc.

Dalata Group Plc.
• This is the largest Hotel operator in Ireland, which is
three and four star hotel.
• The present portfolio includes added with more than
7700 rooms.
• The hotel are also operated in United Kingdom.
• This is operating the Maldron hotels and Clayton
Hotels in UK and Ireland.

Types of Management Accounting
Information
• Financial statements
• Income statements
• Cash Flow
• Budgets
• Break even analysis
• Variance analysis

Financial Statements
• Some documents are required to be prepared in the
financial statements of the company which includes:
• Balance sheet
• Income statements
• Cash flow statements

Income statements
• This is the report of company financial performance over a accounting
period.
• It gives the summary of revenue and expenses by operating and non
operating activities.
• It also shows the net profit and loss incurred over the particular time
period.
less
equals
less
plus
less
equals
equals
Operating expenses
Interest receivable
Operating profit
Interest payable
Gross profit
Cost of sales
Sales revenue
Profit for the period

Cash flow
• This is the net amount of cash and cash equivalent.
• Positive cash flows shows that liquid assets of the company is increasing
and vice versa.
• This is used to assess the quality of company income.
• Cash flow statements are divided into:
• Operating cash flow
• Investing cash flow
• Financing cash flow

Budgets
• This is the statements which showing future projections
• Past data is used for the planning of budget.
• Determine the objectives and targets
• It helps in proper functioning of the company.
• Budgets are divided into cash budget and P&L budget

Management information system
• This is the management and provision of information to
support the organization activities.
• The information which is discussed above are considered as
management accounting system.
• It includes all financial statements of the Dalata Hotel group
plc.
• There is a requirement of proper analysis of all statements of
the company.

Decision making tools
Some decision making tools are as follows:
– forecasting,
– comparison with trends,
– investment,
– raising capital,
– new products and services,
– current issues,

Forecasting
• This is the process of making predictions for the future on the basis of
present and past data.
• Forecasting is done related to the New products and services
• Current issues of the company are also determined.

Price setting
• The process of coming up with a cost to consumers of the
products and services.
• Marketing managers of the company influence price setting
process for products and services.
• This is of two kinds:
• High price
• Low price