The effect of budget on business financial performance in tourism enterprises

It is well known that making a profit still represents the main purpose of enterprises. In order to obtain this, it is necessary to be successful in the field of management. Therefore, it means decision makers have sufficient knowledge, experience and the right tools to deal with the budget. They necessarily need to consider the budget which is constantly given by the management reports. This is actually one of the most important tools that in fact clarify their decision making. Tourism businesses have to cope with the issues that might arise from the dynamics and the permanently fluctuant external factors. Continuous fluctuations in global financial markets, sector conditions, and national or global events require businesses to consider different scenarios in order to control cash flow. The subject of this study is the financial plan. In other words, the budget and the performance of enterprises that have not been realized yet and of course the last but not the least, a display of estimated numbers of the tourism enterprises. The first part of the study contains general information about the thesis. Then in a second part, the thesis is about the budget and the financial process. In this section, the definition of budget in tourism enterprises, budgeting techniques, profits/losses of the budget, objectives and stages of budgeting are explained. In the third part of the study, the definition of budget deviations and the reasons for budget deviations are being taken into consideration. In the third chapter, a hotel was selected as a case study and the budget data obtained about this hotel was analyzed and interpreted. More specifically, the targeted and realized income statement and balance sheet budgets of GABİ HOTEL for 2020, which was chosen as a case study, were analyzed and interpreted. Here are additionally presented the reasons that make deviations to the budget and the suggestions about the budgeting of tourism enterprises. It is expected that this study will contribute to the tourism business managers thus giving more importance to the issue related to the budget.