Finance and funding is a crucial part of travel and tourism business assist helps the company in managing cost effectiveness of business functions. The report will evaluate importance of volume, cost and profit for management in decision making process of Carnival Corporation and Plc. It is leading leisure travel company and own portfolio of cruise brands in America, Europe and North America. Also, it will outline several types of management accounting business information which can be used by Dalata Hotel Group PLC, the hotelier is the largest operator of Ireland and has four star hotels with 7700 rooms. Thus, the report will identify sources and distribution of funding in tourism business.
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1.3 Evaluation of factors influencing profits of travel and tourism business.
There are numerous factors which impact business of travel and tourism companies for long term and short terms. It is important for the organisation to control the impact of business and business environment on services in order to serve traveller satisfaction. Factors which influences profits of Carnival Corporation and Plc are as follows:
- Seasons: Seasonal changes plays a most prominent role in enhancing business functional and impact travel services. It is common factor which disrupts profits margins of Carnival Plc. For instance, if in case the company organises trip at the time of summer holiday then the firm hold chances of getting positive customer response but n the other hand it is the time when all the accommodation and transportation prices gets high due to increasing demand (Spenceley, 2012). Therefore, in this case the firm is either unable manage profits or owns very fewer chances of earnings.
- Changing government regulations: Changing legislation is the factor which impacts travel trips plans of business. The regulation are implemented to maintain security of domestic residents. However, the changes impacts the pricing and travel plans of travellers which is directly proportionate to profits of Carnival plc.
- Fluctuation in currency rates: Every country owns different rate of currency according to which travel company plans trip. Apparently, the organization has several tourists from different nations which impacts profits plans of firm. Like, in case Carnival PLC planned and booked international package at old current rate (Vellas, 2011). This is the situation which hinders over planning and travel budget company that leads to impact profits.
- Terrorism: Threat of attacks and terrorism activities are related to security of travellers which impact international travel trip planning of firm. The risk is indirectly is related to profits of tourism company because it limits the services of Carnival.
2.2 Explain different types of management accounting information that could be used as decision making tools for Dalata Hotel Group plc
Management accounting information is one of the most appropriate tools for Dalata Hotel Group plc organisation in order to managing their various types of financial issues in industry (Smith, 2012). Apart from it, there are numbers of financial issues are being faced by the hotel in industry and they have to address them by utilising several types of management accounting information techniques at workplace. Management accounting comes in the for of financial ratios, budget forecasting, variance analysis and cost accounting management.
Financial statements: Financial statements is also one of the best approach for Dalata Hotel Group plc organisation, its accounting professionals require to formation of proper financial statements of day to day operation. So it assists its professionals to reach to identification of financial gains in industry on a specific financial years of the hotel. It helps the hotel professionals to determine that inflows and outflows of the company in given time period. It also assists them to examination about differences between them.
Variance analysis:Variance analysis is also another important approach for Dalata Hotel Group plc organisation in order to knowing about differences between their standard values to their forecasting values relating to gaining profit in given time period. In addition to this, the business accounting professionals need to make assessment of variances to recognise their proportions of profitability (Chaisawat, 2012). It assists them to making decision regarding the company.
Raising capital: Raising capital is one of the best approach for decision making process in Dalata Hotel Group plc hotel. It helps them to raising their various business criteria such as raising in capital, so that business functionality also expand in its business. The business manager can make decision to raising capital of the business in order to gaining proper development in