Recreation and Tourism Practical Dimensions †MyAssignmenthelp

Question: Discuss about the Recreation and Tourism for Practical Dimensions. Answer: Introduction: The report includes relevant events description, which could help in generating high income for the event company. The overall valuation of event location, type and facilities offered is also depicted in the report. Therefore, the event that will be conducted is Christmas Party, which has been conducted for many years in UK. The event is mainly aimed to be conducted in Christmas at Le Pont de la Tour, which is situated in The Butlers Wharf Building, 36D Shad Thames,London,SE1 2YE. The event venue mainly consists of Meeting rooms, conference centres, party venues and wine cellar, which could be an adequate place for the Christmas party. Moreover, the facilities such as DJ party, 5 hour unlimited beverage, Continental menu, Christmas theming, crackers and novelties. The identified services and venue space mainly states the relevant measures, which could directly help in generating the required level of profitability for the event company. Christmas events in UK is one of the major activities that is been conducted in winter, which allow the event management companies to increase their profits by attract adequate level of customers. There have been many events with different types of themes, which are conducted in Christmas by the event companies. In addition, these similar events in Christmas have been conducted by the company, which mainly allow the event management companies to generate the required level of profitability from investment. The events conducted in London Marriott Hotel County Hall, BFI IMAX and The Deck, and Blueprint Cafe mainly provide higher revenue for the event management companies. The identified events were mainly successful providing higher level of revenue, which was mainly conducted after providing high end entertainment and food services. Moreover, Christmas party in recent years have provided high end service to consumers, which have allowed event management companies to generate high reve nue (Bodie, Kane and Marcus 2014). The rising trends in Christmas celebration have mainly allowed the organisation to generate the required level of profits from operations. Therefore, seeing the overall rising trend in party events organisations and companies could conduct such occasions for increasing the profitability. Sources of finance for the event: Penguin Company is mainly identified to be one of the Major events organising company that has conducted maximum of the events in UK. The proposed event could provide revenue from different streams, as adequate event option are been selected.There are different types of Finance shows that could be used by the organisation for this particular Christmas event. The Expenditure on the event is relatively high due to the services programs and quality food that is provided by the event company. The different level law services provided by the Christmas event would eventually need adequate funding from relevance sources of finance. The different types of Finance source that could be used by the organisation are short term debt, overdraft, and retained income (Chen and Wan 2014). The use of short term debt could eventually help in supporting the short term need of capital which could be utilised for the Christmas event. The Christmas event could also be financed by using overdraft facility from the bank, where relevant direct investments such as booking the venue and payments could be conducted. Lastly, the use of retained income by the event management company could also be conducted for relatively increasing profits and reducing any kind of finance expense from the event (Du, El-Gafy and Zhao 2015). The major income stream that can be identified from the Christmas party is the sale of seats conducted to customers. This is a major income stream that could be used by the event management organisation to generate the required level of income to support its expenses. The sale of tickets or seats to customers with all the relevant services and amenities could provide the required level of revenue for the Christmas event. The revenue you could also be increased by initiating two different types of services that could be provided from the Christmas event. The service that will be provided is the main event of dinner with different types of variety food. The sale of food services will provide the maximum revenue from the event. After which there are different types of Events such as DJ party, wine cellar visit, and Salon Prive. The above depicted events could provide the additional revenue from the Christmas party that could enhance income stream of the event management company (Granadi llo, El-Barbor and Debar 2016). With the help of the identified services provided in Christmas party could eventually have the event organising company to generate the required level of profits from the operation. Illustrating and discussing the proposed event cost, revenue, return on capital employed, and breakeven:200 Particulars Amount Amount Food and Beverage Foods 24,000.00 Beverage 14,500.00 Equipments 4,500.00 Delivery charges 1,200.00 Misc Charges 1,200.00 45,400.00 Location Rental Fee 6,500.00 Other 850.00 7,350.00 Rentals Lightening 2,400.00 Other 410.00 2,810.00 Staff Event coordinator 720.00 Designer 1,100.00 Volunteers 320.00 Labour 4,200.00 Other 6,340.00 Entertainment Music 1,400.00 DJ 800.00 2,200.00 Particulars Value Unit price Amount Exclusive use 140 12 1,680.00 Restaurant 400 89 35,600.00 Wine cellar 40 40 1,600.00 Salon Prive 20 82 1,640.00 DJ 540 75 40,500.00 81,020.00 Particulars Amount Revenue 81,020.00 Variable cost 53,940.00 Contribution 27,080.00 Fixed cost 10,160.00 Net profit 16,920.00 Breakeven sales needed 30,397.46 Return on capital employed 26.4% The above tables mainly help in identifying the all expenses that will be needed for the event. In addition, the table also depicts the revenue that will be generated from the operations with all the relevant net profit and break even sales needed for the event to be successful. The table also depict all the expenses such as food, rental, and other expenses that will be needed for making the event successful. The derivation of the expenses is actually needed to understand the overall extent of the spending, which needs to be conducted for a successful Christmas event. Mallen and Adams (2017) mentioned that evaluation of profits and break even sales directly allows organisation to gauge into the benefits that that could be provided from a particular project. Maximum of 540 citizens will be accommodated in the Christmas party, which might produce total revenue of 81,020 with a net profit of 16,920. The estimation is mainly based on the overall expenses and relevant pricing of the servi ces and foods that will be solved in the Christmas party. Lastly, the break even sales that is needed for the particular Christmas event is 30,398, while the return on capital employed from the evaluation is at 26.4%. These values directly indicate viability of the project which could help in improving profitability the event organising company. Mentioning the pricing of the event including different pricing strategies: Particulars Unit price Exclusive use 12 Restaurant 89 Wine cellar 40 Salon Prive 82 DJ 75 The above table mainly depicts the overall prices of different services that will be provided in the Christmas party. The major pricing strategy is mainly focused on food, wine cellar, Salon Prive and DJ, which could provide the required level of revenue from the Christmas event. Masterman (2014)stated that use of adequate pricing strategy allows the organisation to generate the required level of profits by maintaining relevant demand among customers. The overall pricing strategy is mainly depicting relevant prices according to the services provided in the Christmas party.The high level of pricing strategy would eventually reduce the overall income that could be generated from the event. Therefore, mediocre pricing strategy is used where not more than 540 customers could be entertained on that single day. Hence, keeping the pricing strategy at with mediocre level could eventually help in attracting high standard citizens, which will provide adequate revenue for the event management c ompany. Recommending the most appropriate source of finance, relevant income streams and pricing strategies: From the evaluation of all the above measures relevant measures that will be needed for completing the Christmas party are adequately identified. Therefore, the overall source of finance that will be needed in the Christmas party is from retained income and short term loans. use of retained income and short term loan could eventually help the event organising company to minimise the finance cost. Furthermore, this would eventually help in increasing the revenue generated from the Christmas event. The income stream is also depicted in the above tables where relevant sales from DJ party, wine cellar visit, restaurant and Salon Prive will be conducted to generate the required level of revenue from the event. Lastly, the mediocre pricing strategy adopted by the event management company could eventually help in attracting high class customers, who could bear the selling prices of the service and food. Hence, the use of above measures could eventually help the event management company to s moothly conduct its operations and successfully complete the Christmas event. 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