Finance and Funding in the Travel and Tourism Sector

The Finance and Funding in the Travel and Tourism Sector is an assignment provided
pursuant to BTEC HND in Travel and Tourism Management under Unit number
and title number 2.

Context and Scenario:

The Carib Happy Tours Company (CHTC) is planning a summer holiday trip to a Caribbean
Holiday Resort lasting one month. CHTC will charter an airplane that carries only its tourists.
The company will also book a floor of a hotel at the resort to accommodate its tourists. Both the
airplane and the hotel accommodation will cost Carib 60,000, excluding meals at the hotel. The
hotel will charge the company 150 per tourist for meals. CHTC charges 800 per tourist for the
one-month holiday trip.

A. Examine the concept of CVP analysis and explain its importance in the financial
management of a travel and tourism business such as CHTC [P1.1].

B. Provide an analysis of pricing methods that CHTC can use to determine the price to charge
each tourist on the trip [P1.2].

M1: To achieve M1, you should have applied effective approach to study and analyse the
appropriate pricing method with justification to be used by CHTC. [Task 1 B].

C. Analyse the factors that will influence the profit CHTC will earn on the holiday trip [P1.3].
Using the data provided in the scenario above.

D1: Evaluate the viability of the holiday trip if 90 tourists book to go on the trip and draw
conclusion with justification whether CHTC should organize the trip if it wants to earn a profit of
at least 10,000 [Task 1 C].

Task 2 for LO 2:
________________________________________________________________
Context and Scenario:
CHTC wants to improve its decision making procedures by adopting modern management
accounting decision making techniques. For this reason, the finance director requires you, as a
newly employed finance officer to draft a guide for use by colleagues.
A. Explain the different types of management accounting information that could be used in
CHTC [P2.1].

M2: You should have identified and applied a range of techniques (such as variance analysis)
that can be applied in improving activities and performance within the company such as the
CHTC.
B. Assess the use of investment appraisal techniques as decision-making tools [P 2.2] using an
example from CHTC or other relevant company.
Department of Travel, Tourism and Hospitality Management

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Task 3 for LO 3:
_________________________________________________________________

Context and Scenario:

You have been asked by the finance director to write a paper that explains financial statements
analysis to the directors of CHTC.
A. Download the main financial statements of ANY travel and tourism company of your choice
and interpret the financial statements using appropriate ratios for profitability, liquidity, and
investment [P3.1].

M3: Use appropriate approaches and structure to present and communicate the findings in
manner suitable for the management.

D2: For this, you should have planned, organised and managed substantial activities to
collect data and analyse the company financial statements and to present it appropriately.

D3: Apply creative thinking in concluding whether the company is financially stable in the
long term on the basis of your analysis of profitability and liquidity (D3).

Task 4 for LO 4:
_________________________________________________________________

Context and Scenario:

In future trips, instead of going to hire a hotel for its tourists, CHTC intends to construct its own
hotel in the Caribbean, having obtained a suitable site. That will cost 25 million.
A. Analyse the sources of funding, both internal and external) the company can obtain in
developing the new hotel [P4.1].

The following Learning outcome are addressed

Learning outcomes
LO1 Understand the 1.1 explain the importance of costs and volume in financial management
importance of costs, of travel and tourism businesses
volume and profit for 1.2 analyse pricing methods used in the travel and tourism sector
management decision- 1.3 analyse factors influencing profit for travel and tourism businesses
making in travel and
tourism
LO2 Understand the use 2.1 explain different types of management accounting information that
of management could be used in travel and tourism businesses
accounting information as 2.2 assess the use of investment appraisal management accounting
a decision-making tool in information as a decision-making tool
travel and tourism
businesses
LO3 Be able to interpret 3.1 interpret travel and tourism financial accounts
financial accounts to
assist decision-making in
travel and tourism
businesses
LO4 Understand sources 4.1 analyse sources and distribution of funding for the development of
and distribution of funding capital projects associated with tourism
for public and non-public
tourism development

The following characteristics corresponding the descriptors are considered while

providing assignment help:-

Identify and apply strategies to find
appropriate solution
Use critical reflection to evaluate own work
and justify valid conclusions
Applied effective approach to study and
analyse the appropriate pricing method with
justification to be used by the chosen
company.
Evaluate the viability of the holiday trip if 90
tourists book to go on the trip and draw
conclusion with justification whether CHTC
should organize the trip if it wants to earn a
profit of at least 10,000

Select/design and apply appropriate applied range of techniques (such as variance

methods/technique analysis) that can be applied in improving
activities and performance within the chosen
Take responsibility for managing and travel and tourism company.
organising activities
planned, organised and managed substantial
activities to collect data and analyse the
company financial statements and to present it
appropriately.

Present and communicate appropriate findings appropriate approaches and structure to

present and communicate the findings in
manner suitable for the management.
Demonstrate convergent/lateral/creative
thinking Apply creative thinking in concluding whether
the company is financially stable in the long
term on the basis of your analysis of
profitability and liquidity.
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Assignment Help.