understanding funding and finance in tourism and hospitality...

1 November 2016

UFTH Understanding Funding and Finance in Tourism and Hospitality

Examination

Date: 10th November 2016

Time: 09.30 to 12.30

Instructions

Three hours are allowed for this paper which carries a total of 100 marks

A non-programmable calculator may be used during this examination

Do not begin writing until instructed to by the invigilator

All answers are to be written in blue or black ink.

Read these instructions carefully before answering any questions

Make sure that your name, CTH membership number, centre name and unit title are

clearly marked on any additional pages you hand in.

You are allowed 10 minutes to read through this paper before the examination starts.

There are four questions in this examination and all questions are compulsory

You must attempt all questions to gain a pass. The number of marks allocated to each

question is given next to the question and you should spend time in accordance with that

allocation.

You may find it helpful to make rough notes in the answer booklet; these notes should

be crossed out before handing the booklet in.

Answer each new question on a new page and leave some blank lines between each

part of the question.

The answer booklet, question 2 graph paper and the question paper must all be handed

in to the invigilator before you leave the examination room.

Note: students will need graph paper for Q2 which is included at the end of the exam paper

2 November 2016

UFTH EXAMINATION VALIDATION RECORD

The Learning outcomes and assessment criteria for the Understanding Funding and Finance

in Tourism and Hospitality unit are as follows. Please ensure that when you answer the

questions on pages 3 and 4 that you do answer every sub section of every question.

This page is for background information on the unit only and is not part of the examination.

Students must show that they meet the Learning Outcomes (LOs) and Assessment Criteria (AC) of

the unit of assessment. Therefore, consideration will be given to whether students achieved the

following:

Learning Outcome 1: Understand the sources of funding for both the private and public

sectors in the tourism and hospitality industries.

1.1 Describe the main sources of internal funding.

1.2 Describe the main sources of short term external funding.

1.3 Describe a number of sources of long term external funding.

1.4 Describe the role the public sector may have in funding the industry.

Learning Outcome 2: Understand the importance of costs, volume and profit for decision

making in tourism and hospitality

2.1 Identify costs such as direct, indirect, fixed and variable; and use methods of allocation and

apportionment.

2.2 Discuss how the volume of trade can affect income using break-even analysis.

2.3 Show how to use different pricing methods to achieve targeted gross and net profits

Learning Outcome 3: Interpret financial accounts to aid in decision making in the tourism and

hospitality industry

3.1 Use a number of tools to measure and interpret given financial accounts

3.2 Use the recognised tools shown in 3.1 to make valid suggestions on how to improve the

business’ performance.

Learning Outcome 4: Be able to prepare budgets and compare budgets with actual results

4.1 Explain the main reasons for using budgets, and some of their limitations.

4.2 Prepare relevant operating budgets.

4.3 Calculate variances between given actual and budgeted figures and comment on the

results.

3 November 2016

Exam Questions - Understanding Funding and Finance in Tourism and Hospitality Please note: all questions are compulsory

QUESTION ONE - 25 marks

Question

1.1

Give three examples of sources of long term funding for a business in

the tourism or hospitality industry.

Explain the advantages and disadvantages of each method.

15 marks

10 marks

1.2 a) Explain the role the public sector may have in funding the tourism and

hospitality industry.

b) Describe the benefits the public sector may expect as a result.

QUESTION TWO - 25 marks

Question

2.1

a) In which types of operations is the Gross Profit Percentage pricing method used? Give a numerical example to illustrate your answer

b) Explain the advantages and disadvantages of using the Market Led pricing policy.

5 marks

5 marks

10 marks

5 marks

2.2 The Sunburst Restaurant served 27,000 covers last year, with an Average Selling Price of £30. It had fixed costs of £360,000 and the total variable cost was £450,000. The owner’s investment in the firm is £800,000

a) Draw a fully labeled accurate break-even chart

b) Indicate on the chart the break-even point and the margin of safety

c) Explain how the overall profit is affected when the number of customers increases from 12,000 to 22,000 per year.

What advice would you give this business based on the break-even chart you have drawn?

4 November 2016

QUESTION THREE - 25 marks

Question

3.1

a) What information would you need in order to produce a budgeted Profit and Loss Account for the next 12 months?

b) Explain how you would obtain this information.

c) Produce a draft layout for the Profit and Loss Account showing where the information you have obtained is used.

18 marks

Question

3.2

a) Your cash budget indicates that in 3 months’ time you will be overdrawn at the bank. What are the possible actions you could take to deal with this?

b) Explain how each of the actions will help to avoid going overdrawn.

7 marks

5 November 2016

QUESTION FOUR - 25 marks

4.1 Analyse the following accounts and make valid suggestions on how to

improve the business’ performance. Include at least 6 points in your answer

25 marks

The Starburst Hotel Profit & Loss Account

2015

2016

£'000s £'000s

£'000s £'000s

Accommodation department

Revenue 190

215

Direct expenses 107

125

Accommodation department profit 83

90

Food and Beverage department

Revenue 150

160

Cost of goods sold 51

70

Gross profit 99

90

Direct expenses 55

60

Food and beverage department profit 44

30

Operating profit 127

120

Indirect Expenses

Depreciation

Depreciation on buildings 7

7

Depreciation on furniture and equipment 6

6

Interest on bank loan 1

3

Interest on mortgage 2

2

Admin 32

28

Advertising 18

15

Maintenance 6

4

Power and water 19

21

Insurance 8

7

Property taxes 9

9

108 108

102 102

Net Profit 19

18

6 November 2016

The Starburst Hotel Balance Sheet

2015

2016

£'000s £'000s

£'000s £'000s

Fixed Assets

Land 36

36

Buildings 130

123

Furniture and equipment 26

20

192

179

Current Assets

Stock 5

8

Cash 7

11

Debtors 4 16

6 25

Less Current Liabilities

Creditors 9

12

Wages owing 1 10

2 14

Working capital 6

11

Net assets 198

190

Represented by

Long term liabilities

Mortgage 139

125

Bank loan 10

8

149 149

133 133

Equity

Equity at start of business 20

20

Retained earnings 15

29

35

49

Net profits 19

18

54

67

Less dividend 5

10

49 49

57 57

198

190

7 November 2016

Name………………………………………… CTH number......................... Graph paper for Question 2 to be attached to the answer paper

8 November 2016

CITHI Contemporary Issues in the Tourism and Hospitality Industry

Examination


Time: 09.30 to 12.30

Instructions





Make sure that your name, CTH membership number, centre name and the unit

title are clearly marked on any additional pages you hand in.

You are allowed 10 minutes to read through this paper before the examination

starts.

All questions in this examination are compulsory

You must attempt all questions to gain a pass. The number of marks allocated to

each question is given next to the question and you should spend time in

accordance with that allocation.

Ensure that you allow time at the end to review your answers before

handing in your paper.

You may find it helpful to make rough notes in the answer booklet, these notes

should be crossed out before handing the booklet in.

Answer each new question on a new page and leave some blank lines between

each question part.

The answer booklet and the question paper must both be handed in to the

invigilator before you leave the examination room.

© Copyright CTH 2016 2 November 2016

CITHI EXAMINATION RECORD

The Learning outcomes and assessment criteria for the Contemporary Issues in the

Tourism and Hospitality Industry unit are as follows. Please ensure that when you

answer the questions on pages 3 and 4 that you do answer every sub section of every

question.


Candidates must show that they meet the Learning Outcomes (LOs) and Assessment Criteria (AC) of the unit of assessment. Therefore, consideration will be given to whether candidates achieved the following:

Learning Outcome 1: Understand how to identify emerging issues in the tourism and hospitality industry

1.1 Use information sources that are relevant to the identification of issues.

1.2 Analyse information using accepted analytical techniques

1.3 Evaluate the use of systems thinking as a means of identifying emerging issues

1.4 Assess the reliability and validity of media information

1.5 Evaluate the implications of ethics and social responsibility

Learning Outcome 2: Examine the impact of emerging issues in the tourism and hospitality industry.

2.1 Assess the relevance and potential seriousness of emerging issues

2.2 Identify who may be affected and in what way

2.3 Assess the attitudes of stakeholders to emerging issues

2.4 Identify how emerging issues may affect a business (eg strategic, financial, operational,

environmental, political, technological, reputation, ethical customer reaction, consumer

rights) in the short and long term

2.5 Analyse the potential implications of emerging issues and the possible consequences of

non-action

2.6 Assess the role of a project team in addressing emerging issues

2.7 Evaluate the role of knowledge management in addressing emerging issues


Exam Questions - Contemporary Issues in the Tourism and Hospitality Industry Please note: ALL questions are compulsory and carry a total of 150 marks

Question

1

Discuss how you would identify an emerging issue in the tourism and hospitality industry. Include the following issues in your answer:

a) Recommend the information sources you could use b) Describe two analytical techniques you could use. c) Explain whether media information is reliable d) Describe the role of ethics and social responsibility in

the identification of emerging issues in tourism and hospitality.

Give examples of emerging issues to support your answer.

50 marks

Question

2

All your answers to question 2 should be related to one

emerging issue in the tourism and hospitality industry:

2.1 Explain the relevance of this issue within the tourism and

hospitality industry

2.2 Discuss how this emerging issue could affect the different

stakeholders of the organisation

2.3 Identify and explain how this emerging issue may affect a

business from a strategic and financial perspective. In

your answer discuss both short and long term effects.

50 marks


Question

3

For question 3 your choice of organisation or destination

should be different to that already mentioned in the answers

to questions 1 and 2.

For a tourism or hospitality organisation or destination of your

choice:

3.1 Explain how an emerging issue will affect a business from

an operational and customer point of view.

3.2 Discuss what could happen in both the short and long

term if the organisation or destination chose to ignore the

emerging issue.

3.3 Discuss the advantages and disadvantages of appointing

a project team to handle the emerging issue against

giving sole responsibility to one individual. Recommend

the structure and responsibilities of a project team.

50 marks

SMTHI Strategic Marketing in the Tourism and Hospitality Industry


Time: 09.30 to 12.30

Instructions





Make sure that your name, CTH membership number, centre name and the unit

title are clearly marked on any additional pages you hand in.

You are allowed 10 minutes to read through this paper before the examination starts.

You must attempt all questions to gain a pass. The number of marks allocated to

each question is given next to the question and you should spend time in accordance

with that allocation.

You may find it helpful to make rough notes in the answer booklet; these notes

should be crossed out before handing the booklet in.

Answer each new question on a new page and leave some blank lines between each

part of the question.

The answer booklet and the question paper must both be handed in to the invigilator

before you leave the examination room.

Strategic Marketing in the Tourism and Hospitality Industry

© Copyright CTH 2016 2 NOVEMBER 2016

SMTHI EXAMINATION RECORD

The Learning outcomes and assessment criteria for the Strategic Marketing in the Tourism

and Hospitality Industry unit are as follows. Please ensure that when you answer the

questions on pages 3 and 4 that you do answer every sub section of every question.


Students must show that they meet the Learning Outcomes (LOs) and Assessment Criteria (AC) of the

unit of assessment. Therefore, consideration will be given to whether candidates achieved the following:

Learning Outcome 1: Contribute to the development of marketing and sales strategies in the

tourism and hospitality industry

1.1 Evaluate the interface between sales and marketing

1.2 Offer contributions that meet strategic and operational objectives and priorities of a tourism and

hospitality business

1.3 Identify sales and marketing targets and objectives that are realistic and relevant to the market

1.4 Assess international and cultural influences in the tourism and hospitality industry

Learning Outcome 2: Optimise marketing communications in the tourism and hospitality

industry

2.1 Design marketing communications that appeal to a range of target customers

2.2 Optimise the use of a range of different media

2.3 Evaluate the effectiveness of marketing communications

Learning Outcome 3: Build strategic partnerships in the tourism and hospitality industry

3.1 Identify gaps and areas of market saturation

3.2 Identify potential partners that are capable of furthering organisational objectives

3.3 Analyse the requirements of production, quality and distribution channels

3.4 Negotiate agreements that are consistent with organisational objectives, priorities and values

Learning Outcome 4: Develop new products and/or services (NPD) in hospitality or tourism

4.1 Characterise the market for new or adapted products and/or services

4.2 Generate and screen practicable ideas against agreed criteria through market testing

4.3 Clarify any intellectual property issues

4.4 Price product or service in accordance with pricing strategy

Learning Outcome 5: Understand the purpose and components of an organisational business

plan in the tourism and hospitality industry

5.1 Identify potential business opportunities that are commensurate with strategic objectives from an

analysis of emerging trends

5.2 Ensure the coherence of different functional priorities and plans

5.3 Explain the allocation of operational resources in line with strategic and operational priorities

5.4 Explain the consultation process relating to business planning



EXAM QUESTIONS Please note: ALL questions are compulsory and carry a total of 100 marks Where examples are asked for all answers should relate to a hotel, travel agency or tour operator.

Question

1

1.1. "It is important that the sales and marketing functions within a

tourism and hospitality organisation work together". Discuss whether you feel this statement is true or false with reference to an organisation of your choice.

1.2. For the organisation chosen in 1.1 identify four sales and

marketing targets that would be relevant to the market in

which the organisation operates.

1.3. Discuss how cultural influences affect the hospitality and

tourism industry in a location of your choice.

25 marks

Question

2

2.1 Explain why it is important to design marketing

communications that appeal to a range of target customers.

Give examples to support your answer.

2.2 Explain how you would evaluate the effectiveness of two

different types of media used in a tourism or hospitality

organisation.

20 marks



Question

3

3.1 Explain the term 'market saturation', giving examples from

within the hospitality and tourism industry to support your

answer.

3.2 Compare and contrast the requirements of production, quality

and distribution channels in the tourism and hospitality

industry. Give three examples to support your answer.

20 marks

Question 4

4.1. When developing a new product or service in the tourism or

hospitality industry analyse the function of market testing.

4.2. Identify what you would take into consideration when setting prices for a new product or service.

4.3. Discuss how the analysis of emerging trends is used to identify potential business opportunities.

4.4. With reference to a tourism or hospitality organisation evaluate the consultation process relating to business planning.

35 marks

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