Financial Management and Decision-Making in the Tourism Industry

This report delves into the financial aspects of the tourism sector, highlighting the importance of effective financial management and accounting practices. It covers key areas such as budgeting, financial statements, variance analysis, and forecasting, demonstrating how these tools are used for decision-making. The report emphasizes the role of management accounting information in optimizing revenue decisions and managing capital investments. It also discusses methods for comparing trends, predicting events, and securing capital, providing a comprehensive overview of financial strategies within the tourism industry. The report concludes with a list of references that support the analysis.

Finance and Funding
in the Travel and
Tourism Sector
TASK 2

Cover content
• Introduction
 Different kind of management accounting information
which used in tourism sector
• Use of management accounting information as a decision-
making tool
• References

Introduction
Finance is one of the paramount component which is
importance for functioning various business activities. A
company can render effective and better services for their
consumer but this is require to balance their financial
resources of enterprise cause in case if failing ion proper
management, the firm may have to face various problems
and issues.

Different kind of management accounting
information which used in tourism sector
Budget: It can be considered as the financial statement that is
being utilised to manage entire long objectives terms of an
enterprise according to their requirements.
Financial Statement: This statements is utilised in order to
represents the records, expenses and income of a company
in a year.

Contd..
 Variance Analysis: The evaluation is organised for
controlling and monitoring the actual outcome and
planned expectation in company.
 Forecasts: This procedure is utilised to meet the future
trends through utilising the historic and previous
information data.

Contd..
Information Management System: This is considered as
process of decision-making which is optimised by Datala
Hotel manager for making effective revenues decision for
future purpose.

Use of management accounting
information as a decision-making tool
There are various methods and techniques utilise several
projects of capital which can be evaluated that is benefits can
be managed in effective way which are like complied which
is mentioned as below:
 Trends Comparison: Accounting system management
can be opted for documentation of data.
 Forecasting: In the respected procedure, coordinated data
aid in effective events prediction

Contd...
 Investment: It is paramount for organisation to take
effective decision in regard of investing the capital in
essential which is a complex task.
 Increasing Capital: It is paramount for the
organisation is to protect the require information and
data which can use for convincing the potential buyers
for meeting the capital funds and amount.

References
 Murphy, P.E., 2013. Tourism: A community approach (RLE
Tourism). Routledge.
 Nielsen, H. and Spenceley, A., 2011. The success of tourism
in Rwanda: Gorillas and more. Yes Africa Can: Success
Stories from a Dynamic Continent. pp.231-249.
 Pike, S., 2012. Destination marketing. Routledge.
 Song, H. and Lin, S., 2011. Impacts of the financial and
economic crisis on tourism in Asia. Journal of Travel
Research.49(1). pp.16-30.

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