MANAGEMENT ACCOUNTING

Management Accounting

Management Accounting

Introduction

The tourism and recreation industry is increasingly recognized as an important economic, environmental and social force, which can bring both benefit and adversity. A key element of a successful tourism industry is the ability to recognize and deal with change across a wide range of behavioral and technological factors and the way they interact.

The Customers of Hospitality industry

The customers are the users of the services in the hospitality industry. These users belong to different categories visiting hospitality with diverse aims and objectives. Thus, it becomes very important for the hospitality marketer to be aware of these different categories and also to know which categories of users form their major potential customer group (Williams, 2000, 217). The users of the hospitality can be categorized as follows:

The users of the hospitality come from different regions and segments and with different culture and attitude. The hospitality marketer has to keep in view the variations in these categories and make best of strategies to satisfy them. (West, 2006, 139)British Airways

On the instruction of British Airways the financial analyst appointed and asked to analyse the financial position and report on the future performance and profitability of the organisation as well as to explain what has influenced the ratios. The report handed in by the company's account department. In order to fill up the demand of the present report, some financial ratios from the preceding years  used (profitability, liquidity, efficiency, investment, gearing and growth) (Ritzer. 2007, 129). To give a clear overview of the airline the financial analyst will also examine the internal environment within the airlines operate and the sector of the industry, in which the company performs. Additionally, the report includes implications about external factors influencing the organisation. The independent investor will then considers whether it will be profitable to invest with British Airways 250,000. (Aitchison, 2006, 417)

The financial reports of British Airways for the period from 2008 to 2010 assessed in order to analyse and report future performance of the company. In comparison with previous years the general performance of British Airways improved. The turnover, operating profit, attributable profit for 2010 went up by 3, 3%, 33.3% and 93.1% in comparison with 2011. There was a growth at 1.5 point in operating margin but the company noted a decrease at 4.4% in serious operation yield. Through repayment of its debt it managed to lower net debt from 54.1% to 42.7%. (Chan, 2006, 213)

Operating statistics showed upward in 2010 of RPK (revenue passenger kilometres), RTK (revenue tonne kilometres) and passenger load factor at 4.7%, 6, 5% and 1.8 points respectively. However, the passengers carried result was down by 1.1% in 2010 to 2011. The trend ratio shows slow upward movement in profitability, maintenance of efficiency, appropriate liquidity and improved gearing. However, the Price /Earning ratio noted a quite voluminous fall. (Gibson, 2006, 693)Lufthansa Airlines

Air transport is one of the world's biggest and fastest growing industries. It facilitates economic development, world trade, worldwide investment and tourism. In the last ten years, air travel has grown by 7% per year. Travel for both business and leisure purposes grew internationally. Scheduled airlines carried 1.5 billion passengers last ...