Financial Decision Making for Travel and Tourism: Thomas Cook Plan

This presentation delves into the financial decision-making processes within the Thomas Cook Group, specifically in the context of its expansion plans within the travel and tourism sector. It examines the types of decisions involved, including financing and investment choices, highlighting the importance of equity share capital and debt capital as funding sources. The presentation outlines Thomas Cook's financial plan, detailing fund collection strategies, cost considerations, and pricing strategies. It further discusses the benefits of the plan, such as improved operational efficiency, effective fund management, cost control, and profit maximization. Recommendations are provided, including diversifying funding sources, strategic fund allocation, cost analysis, and the implementation of price skimming and marginal costing. The presentation concludes that sound financing and investment decisions are crucial for business expansion, both in existing and new areas, with references to relevant academic sources.

Financial Decision Making in
Travel and Tourism Sector
“For Thomas Cook group”

Table Of Content
 Introduction
 Types of decisions
 Financing decision
 Investment decision
 Financial plan of Thomas cook
 Benefits for Thomas cook
 Recommendations
 Conclusion
 References

Introduction
In this presentation the decisions
which will be made in the Thomas
cook in context of the expansion
plan will be considered. the
benefits which will be attained due
to them will also be discussed. The Presentation discusses :
 Investment decisions
 Financing decision

Types of decisions
In the business there are various types of decisions which will
be made and they include:
 Financing decisions
 Investment decisions

Financing decisions
Under this the decisions in
respect of the manner in which
funds will have to be collected
are taken. There are two
sources by which it can be
done and they are:
 Equity Share capital
 Debt capital

Investment decision
These are the decisions which
will be made in respect of the
investments to be made by
use of appraisal tools. In this
the manner in benefits will be
received by the use of the
funds will be identified. They
are of two types:
 Short term period
 Long term period

Financial plan of Thomas cook
A plan for expansion has
been set in which
following aspects are
involved:
 Sources that will be
used for fund
collection.
 Costs which will be
incurred in proposal.
 Pricing strategies which
are to be used in
company.

Benefits for Thomas Cook
By the help of the plan there will be various benefits which will
be obtained and they are:
 Proper conduction of operations
 No issues will be faced in respect of funds
 Cost control will be established
 Appropriate profits will be made

Recommendation
 Thomas cook shall obtain funds from government, equity
and loans.
 All the funds shall be properly allocated to various
departments.
 Cost analysis is to be performed so that level of activities
can be identified.
 Price skimming and marginal costing shall be used.

Conclusion
It can be concluded that:
 Financing decisions are helpful in expansion in
existing business activity
 Investing decisions are helpful in expansion in
new areas of business

References
 Pijourlet, G., 2013. Corporate
Social Responsibility and
Financing Decisions. In European
Financial Management
Association, 2013 Annual
Meetings.
 Perić, M. and Đurkin, J., 2015.
Determinants of investment
decisions in a crisis: Perspective
of Croatian small
firms. Management: journal of
contemporary management
issues, 20(2), pp.115-133.