Budgeting process in tourism companies for the purpose of improving the quality of tourism products

Deciding on a travel agency’s budget is a highly complex task. Budgeting process
in the travel agency is directly linked to the planning process, which needs to
improve the decision-making process through formalization of the planning
process. Travel agency’s objectives and methods for meeting those objectives
are defined in the planning process, starting from the internal and external
factors that are of particular importance when making a series of decisions in
the process of strategic and operational planning. When formulating general
budget, the rational aspect of decision-making predominates when it comes
to the quality improvement of a tourism product, although other decisionmaking
aspects are implemented by an agency in accordance with its financial
and human resources, and time as a resource, should not be ignored. Scientific
decision-making requires greater financial resources. There is also intuitive
decision making in case the agency performs an independent assessment of
the market, relying on its previous business experience. In the final phase of
the general budget formulation, new decisions are made based on the budgeted
balance sheet, which determines further business policy of the agency,
no matter if the proposed budget will be accepted or revised.