Travel and Tourism

Travel and Tourism

Task 1

1.1 Importance of Costs and Volume in Financial Management of Travel and Tourism Businesses

Financial Planning

Management need to guarantee that enough funding is accessible at the funding to help the travel and tourism businesses. In the short and long term, financing may be needed for considerable increases to the profitable limit of the business or to make acquisitions.

Financial Control

Financial control is a basically critical action to help the travel and tourism businesses make certain that the businesses is meeting its targets.

Financial Decision Making

The key parts of money related choice making identify with venture, financing and profits: Investments must be financed somehow; nonetheless, there are continually financing plan B that might be acknowledged. For instance it is conceivable to raise fund from offering new shares, taking credit from suppliers or borrowing from banks. A key financing choice is if profits earned by the business ought to be held as opposed to circulated to shareholders through profits.

Tourism as a Part of the Global Economy

Tourism is the activities of persons traveling to and staying in places outside their usual environment for less than one complete year, for the purpose of leisure and business trips. Tourism in United Kingdom is a multifaceted industry, which includes transportation, tourist facility providing accommodation and catering, travel agencies, tour guide services, tourist information systems and other infrastructure and other tourism services. Like any economic activity and tourism pollutes the environment (Bodnar, Hayt & Marston, 1998). Due to the excessive concentration of tourism is to degrade the recreational potential of the landscape with all its negative effects, such as noise, air and water pollution, degradation of flora and fauna, damage to monuments, the problems associated with waste disposal. Too one-sided focus on mass tourism can lead to significant vulnerability economic development in the region (Bodnar, Hayt & Marston, 1998). The tourism industry in UK is one of the most important components of the national and global economy.

Tourism in UK is a significant component of the world economy and also the national economy of United Kingdom. In some areas, UK tourism constitutes the main source of income of the population. In the 20th century has become a regular part of the lifestyle of many people, especially in developed countries (Brealey, Myers & Allen, 2006). On one side is the source of benefits, which depend on embedded costs. As with any type of business is tourism, however, on the other hand, certain risks and negative effects, especially in terms of environmental damage (Amihud & Mendelson, 1988). In United Kingdom, sustainable tourism is that, when the activities of service providers within their own activities and visitor impact on the local community, local ecosystems and the biosphere only so that irreversibly alter the local community, local ecosystems and the biosphere and does not restrict the function of the biosphere and human activities in the future (Brealey, Myers & Allen, 2006).

1.2 Pricing Methods in Travel and Tourism Sector

Competition

It is important for travel and tourism businesses to find ...