Tour Costing Principles

What is the main source of income for tour operators?

• Accommodation

• Transportation

• Package holiday price

• Tour guide services

What is the process of determining the actual cost of a tour package called?

• Pricing

• Costing

• Mark-up calculation

• Profit analysis

What must tour operators determine before costing tour packages?

• The number of participants

• If air transportation is involved

• The type of tour package

• The cost of meals

What is the maximum capacity of a tour vehicle based on?

• The number of tour guides

• The number of paying passengers

• The type of transportation

• The total cost of the tour

How is the cost of transportation and accommodation calculated when operating outside the tour guide’s place of residence?

• Prorated by a predetermined number of participants

• Fixed cost

• Based on the number of vehicles

• Based on the number of guests

What is the rule regarding entrance fees?

• Always fixed

• Variable

• Free concessions allowed

• Depends on the tour operator

How is the cost of entertainment activities determined?

• Fixed or may vary

• Always fixed

• Always variable

• Depends on the number of guests

What is the rule for hotel accommodations in the tour package?

• Two pax must share a room

• Single occupancy allowed

• No sharing allowed

• Fixed cost regardless of occupancy

What is the calculation for the triple room rate?

• Cost of twin/double room plus extra bed divided by three

• Fixed cost per guest

• Cost of single room divided by three

• Cost of double room divided by two

What is the rule for meals in accommodation establishments?

• Fixed costs

• Variable costs

• Depends on the menu

• Always included in the package