Finance for Hospitality ManagersModule Details

Course/Module Description:

This module is designed to enable students to gain knowledge and understanding of managerial finance and accounting practices, processes and concepts that can be applied in a general management context towards effective strategic decisions in the general hospitality industry. The central consideration of this module is that managers need to be aware of, and be able to critically evaluate, the informational outputs of accounting systems and financial management techniques, and how their application underpins managerial, financing and investment decisions, and contemporary issues of relevance to these techniques in Hotel and Tourism industry.

Course/Module Objectives:

The main objectives of the course are:

1. To provide an overview of the key finance principles in the Hotel and Tourism industry as well as help students to understand the use of cost accounting techniques in the Hotel and Tourism industry
2. To understand how financial markets, operate and how security prices are determined in the Hotel and Tourism industry
3. To show how managerial finance can affect the value of the firm and explore the use of performance measurement systems in organizations in the Hotel and Tourism industry
4. To understand the importance and role of finance in valuation techniques and risk analysis towards investment opportunities and evaluation of those through investment techniques in the Hotel and Tourism industry
5. To how financial theory can be used to address practical problems in the Hotel and Tourism industry and help students to explore plans and budgets and discuss the influence of target setting for manager as well as discuss budgetary behaviour, control, reporting and financing working capital in the Hotel and Tourism industry.

Course/Module Learning Outcomes:

After completion of the course students are expected to be able:

1. To define the importance and role of finance in the Hotel and Tourism industry as well as explain the analysis of financial statements and calculate and apply time value of money concepts in the Hotel and Tourism industry
2. To measure risk and rates of return as well as assess the valuation of Bonds and Stocks in the Hotel and Tourism industry. Furthermore, to illustrate cash flow estimation for expansion projects and event projects in the Hotel and Tourism industry
3. To prepare and present management information for both short term and long term decision making in the Hotel and Tourism industry
4. To explain the cost of capital and estimate the firm’s optimal capital structure in the Hotel and Tourism industry as well as classify costs and explain their behavior. In addition, discuss elements of costs and perform calculations of direct materials, direct labor costs including peak seasonal period in the Hotel and Tourism industry
5. To assess the factors that influence the pricing decision and cost plus pricing, break-even pricing and profit oriented pricing in the Hotel and Tourism industry as well as evaluate projected financial returns using investment appraisal techniques. Discuss the use of key performance indicators and the role of performance measurement in the Hotel and Tourism industry.