Finance and Funding in the Tourism Sector - Module Report

This report focuses on the application of financial management principles within the tourism sector. It explores the various management accounting techniques utilized, such as budget reports, financial statements, variance analysis, and forecasting, highlighting their significance in strategic decision-making. The report examines how these tools enable businesses to analyze performance, forecast future trends, and make informed decisions regarding long-term and short-term planning. It also emphasizes the role of management information systems in supporting these processes. The report highlights the importance of these financial tools in managing costs, increasing profits, and making strategic decisions. The conclusion summarizes the importance of accounting tools in making effective business decisions for the tourism sector.

Finance and Funding in the
Travel and Tourism
Sector
TASK 2

Table of Content
• Introduction
• Types of Management Accounting used in Tourism Sector
• Utilization of management accounting techniques as a decision-making
tool.
• References

Introduction
Management Accounting is chiefly used by business enterprise in order to
plan and control strategic decision that contributes towards the growth and
profitability of an organization. Account manager use information related to
the financials of company and came up with decision that contributes towards
its growth.

Types of Management Accounting used in
Tourism Sector
The account manager of Dalata Plc prepares accounting report by analyzing these
information in order to attain higher profits or revenues. Following are the different
types of management accounting used by manager of referred firm are as follows:
 Budget Report
 Financial Statement
 Variance Analysis
 Forecast
 Management Information System

Utilization of management accounting techniques as
a decision-making tool.
Every business enterprise is using management accounting and its tool and
techniques in order to yield higher profits and revenues. Accounts Manager of
every firm uses this essential information in order to make strategic decision and
policies related with long term growth and success of company. With the help of
management accounting and its tool, Dalata can forecast its future sales and
demand and analyze the current position and performance of the company.

Contd...
Following are the roles of management accounting techniques that aid company
in effective making strategic decision are as follows:
 Long-term and Short-term Planning
 Management Information System
 Forecasting
 Control

CONCLUSION
Travel and tourism industry ascertain various costs and profits which is helpful
for expansion of the business. Company is using various management accounting
information such as budgets, variance analysis etc. It helps the firm in taking
various decisions such as comparison of current year performance with that of
previous year, can reduce the expenses for increasing profits, forecasting, raising
new capital and investment purpose.

References
Spenceley, A. ed., 2012. Responsible tourism: Critical issues for
conservation and development. Routledge.
Henderson, J.C., 2010. Sharia-compliant hotels. Tourism and
Hospitality Research.10(3). pp.246-254.
Pike, S., 2012. Destination marketing. Routledge.

Thank-You